Cardano founder Charles Hoskinson said he lost around $2.5 billion in paper value over the past four years. The losses came from regulatory chaos and political interference that wiped out retail investors across the market.
In a recent interview with Scott Melker from The Wolf of All Streets, Hoskinson broke down what went wrong between 2022 and 2025. The FTX and Luna collapses destroyed trust. Aggressive and unclear U.S. regulation created fear. Bitcoin benefited while altcoins stagnated.
“Retail got battered and burned and broken,” Hoskinson said.
The Cardano founder pointed to government-led memecoins and “photo-op policymaking” as factors that hurt the industry’s credibility. He said bipartisan support for crypto collapsed once it became tied to partisan politics.
“By definition, cryptocurrency should be politically neutral, geographically neutral, ethnically neutral,” he added.
Hoskinson noted a clear split in the market. Bitcoin moved forward with institutional adoption, while most altcoins were left behind.
As Bitcoin gained clarity through ETFs and traditional finance access, other networks faced uncertainty and enforcement pressure. The result was a market where Bitcoin matured, but broader crypto growth stalled.
Hoskinson rejected the idea that 2026 is a traditional bull cycle. He called it a reset.
Previous cycles were driven by speculation. This time, he argued, real utility and next-generation infrastructure are required. Regulatory clarity alone will not bring retail investors back.
He outlined two possible paths: one where Wall Street gains control through institutional dominance and surveillance, and another where privacy-focused infrastructure brings retail back into the market.
“This is the make-or-break year for the soul of crypto,” Hoskinson said.
Despite his losses, Hoskinson said he remains optimistic. He compared crypto’s future to Amazon’s transformation, where the company eventually represented something entirely different built on real utility.
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