Cardano (ADA) founder Charles Hoskinson has a message for anyone who thinks wealthy crypto founders don't feel market pain: he's personally down over $2.5 billion in the past four years. And he's not blaming the technology—he's blaming politics.
The Bull Market That Never Came
Speaking on The Wolf Of All Streets Podcast, Hoskinson explained that the industry expected Trump's election to send crypto prices soaring. Instead, they got chaos. Most cryptocurrencies have dropped 40-50% since Trump took office, revealing just how unhealthy the market has become under current leadership.
Hoskinson joked that crypto's current state resembles Japan in 1946. The industry weathered the FTX collapse, the Luna implosion, and former SEC Chair Gary Gensler's enforcement crusade, only to stumble when the government finally showed up to help.
The Trump Memecoin Disaster
Hoskinson didn't hold back on Official Trump (TRUMP), calling the memecoin launch "catastrophic" for the industry. Before the launch, crypto enjoyed bipartisan support with roughly 70 Senate votes. Democrats had constituents who owned crypto and donors from the industry.
Now? Democrats have a perfect campaign message: crypto equals Trump corruption. Hoskinson believes this will make passing meaningful legislation nearly impossible, even with Republican control of Congress. The launch transformed crypto from a bipartisan financial innovation into a partisan weapon for midterm campaigns.
The strategic failure runs even deeper. Trump could have earned two to three times more money by launching a memecoin under a proper regulatory framework, which would have attracted institutional capital and supercharged markets. Instead, he launched into regulatory uncertainty and handed his opponents a political gift.
Why Retail Investors Aren't Coming Back
Many retail holders are down 70-80% from their entry points and simply can't justify another round of speculation to their families. "Retail doesn't want to come back," Hoskinson said. "They're just like my wife is going to divorce me if I keep buying this stuff because every time I say it's going to 10x, I just get destroyed."
The 2025 recovery split into two completely different stories. Institutions poured money into Bitcoin (BTC) through ETFs and structured products, driving BTC prices higher. But none of that capital trickled down to altcoins, which remained stagnant throughout the year.
Banks Win, Innovation Loses
Hoskinson dismissed recent legislation like the Genius Act as essentially fan service for banks, allowing them to become stablecoin issuers without helping DeFi, layer-one protocols, or actual innovation. He noted the irony: everyone bought Bitcoin to escape Wall Street control, and now institutions hold all the Bitcoin on behalf of other people.
According to Hoskinson, this is the make-or-break year for crypto's soul. Either Wall Street completes its takeover, or a retail revolution with the fourth generation brings the market back to its decentralized roots. The technology was never the problem—the politics might be what kills it.