In 2015 Cardano (ADA) became a household name in the crypto world and in 2017 the layer-1 blockchain officially launched. Ethereum (ETH) co-founder Charles Hoskinson is the founder of the project who, with his company, Input Output Global (IOG), is the main driving force behind the development of Cardano. The company led by Charles Hoskinson was originally called ‘Input Output Hong Kong (IOHK)’ but has since been changed to IOG.
News has now come out that IOG has ‘fired’ an undetermined number of employees in an effort to restructure the company. However, Hoskinson has ruled on this with astonishment. What exactly?
News about Cardano’s IOG
Word spread that Cardano would be in the process of restructuring into a so-called venture studio with a smaller core business model. A venture studio is a company that realizes several internal startups.
This new venture studio model will have a number of spinoffs including Lace, a wallet division, Prism, an identity framework, and Midnight, focused on data privacy and zero knowledge.
Charles Hoskinson is surprised
On June 12, Hoskinson sent a tweet into the world expressing his surprise at the news. He indicated that IOG has been restructuring in a “quite public way” to a venture studio model for 18 months. According to him, there is no question of a round of layoffs:
Cardano is a platform and the idea is to build things on top of it. For example, IOG has founded companies such as Midnight, Lace and Prism. This means you hire or move people to the subsidiary and also restructure the parent company to be better suited to roll out businesses.”
He therefore has many question marks about the fact that the news is in a sense being brought out as a layoff story.
Each company will also eventually have its own CEOs, staff and investors under the parent company, Hoskinson explains.
On the ask or the development of Cardano’s infrastructure, such as the layer-2 scaling solution Hydra, falls under IOG, Hoskinson replies the following:
“Yes, that’s the idea. But it makes little sense to build high-growth products under the same house that does high-certainty engineering and research. They are different cultures and business processes. Monolithic organizations are slow, expensive and inefficient.”
ADA rate
Recently, the share price of ADA has not been doing very well. This of course has to do with the attack by the American SEC on exchanges, and cryptocurrencies that they believe can be seen as securities. ADA was part of this list and crashed a lot. On Twitter, we asked our readers what they expect for the ADA price in the near future? Is it all going well, or will ADA sink even further? Let us know in the poll below!
What are we going for @Cardano s #ada see sooner?
— Crypto Insiders (@CryptoinsidersS) June 14, 2023