Charles Hoskinson, the founder of Cardano, created a buzz in the crypto market as his casual post featuring his dog, Freya, inadvertently caused a 76% crash in an unassociated NFT project.
On Sunday, December 10, Hoskinson shared a snapshot on the social network X, featuring himself and his dog companion. However, the seemingly harmless post took an unexpected turn due to an inactive account tagged in it, labeled FreyaHoskinson.
🐕 Charles Hoskinson Clarifies FREYA Coin Association: Cardano founder Charles Hoskinson addresses allegations of association with the memecoin project FREYA, explaining that his previous tagging of FREYA in a post featuring his dog Freya was a personal mistake. He underscores…
— BitcoinWorld Media (@ItsBitcoinWorld) December 11, 2023
Speculators transformed the dormant account into the core of a new NFT project on Cardano, named FREYA. The crypto community swiftly assumed that Hoskinson had endorsed this emerging cryptocurrency venture, causing a surge of excitement among traders anticipating quick profits.
The unassociated NFT project saw an astonishing 2,530% surge, triggering an instant craze. Thus far, as quickly as the surge occurred, a sharp decline followed right away. Within the next hour, half of the token’s value plummeted by an overwhelming 76%, leaving traders bewildered and frustrated.
Hoskinson promptly addressed the situation, disassociating himself from the fan-created project. He emphasized that he had neither endorsed nor conducted any due diligence on the burgeoning NFT venture. Hoskinson took further action by deleting the original post featuring Freya and the now-infamous account mention, distancing himself from the unintended chaos that ensued.
Just so it's absolutely unambiguous. I have nothing to do with fan projects like Freya or other NFT plays. It's flattering that people make artwork about my dog or my life, but I'm not affiliated, have not done any diligence on these projects, and do not endorse them.
It's…
— Charles Hoskinson (@IOHK_Charles) December 10, 2023
This incident serves as a stark reminder of the risks associated with speculative trading in the volatile world of cryptocurrency. Hoskinson’s response underscores the importance of thorough due diligence and caution, particularly with fan-created projects associated with public figures in the crypto space.
As the crypto community reflects on this unexpected episode, it highlights the challenges and pitfalls of navigating the intersection between celebrity influence and the decentralized nature of blockchain projects. Hoskinson’s message reinforces the need for vigilance and discernment in evaluating emerging projects, reminding traders to exercise caution even in the face of seemingly enticing opportunities.
Knew it
We like your dog though! https://t.co/ZbFrjEVFrl
— Froggo (@Froggieo_) December 10, 2023
