Charles Hoskinson, the CEO of Input Output Global, who created Cardano (ADA), has recently reacted to the negative comment made by Do Kwon, the CEO of Terra Labs and the Terra ecosystem, about the largest proof-of-stake (PoS) blockchain.
This came about after Kwon made a disrespectful comment about Cardano on Twitter.
The issue can be traced back to 8th April 2022, after the Luna Foundation Guard (LFG) took to Twitter to announce that it has purchased $100 million worth of AVAX tokens to expand TerraUSD (UST) stablecoin reserve.
LFG’s announcement says, “Welcoming $AVAX as the second major layer, one crypto asset next to $BTC as part of the $UST Reserve. The inclusion of @avalancheavax’s native token marks the start of a diverse pool of layer one crypto assets helping support the $UST peg.”
The announcement got the larger part of the crypto community confused. Many were asking why the foundation needed to buy another cryptocurrency other than Bitcoin (BTC), which contradicts its initial plan.
Some crypto community members suggested that the foundation is likely planning to burn other cryptocurrencies instead of LUNA. A Twitter user also asked whether all the digital currencies acquired by LFG are correlated.
Another user said if the assets purchased by LFG are really correlated, then Kwon is likely unaware of the Long-Term Capital Management (LTCM) saga, which accrued billions of dollars from investors with the hope of taking advantage of an arbitrage strategy to leverage market trends. Howbeit, it was investors that eventually suffered losses after the strategy failed to go as planned.
Where Luna CEO Disrespected Cardano (ADA)?
In response to the user’s sensitive opinion, Kwon pointed out that the foundation may need to purchase Cardano (ADA) for negative correlation, an investment strategy that involves the union of two variables where one increases as the other decreases and vice versa.
And all the reserve assets are correlated?
Has the dude not heard of LTCM
— Josh Coversmith (@jcoversmo) April 8, 2022
Charles Hoskinson Responds
The comment is obviously disrespectful. Cardano community and Charles Hoskinson did not find it funny.
As usual, Cardano’s founder did not let it go without a befitting reply.
Replying to Kwon’s tweet, Hoskinson wrote, “Should I buy some Luna for negative correlation?”
Should I buy some Luna for negative correlation? https://t.co/iFeHJTSudM
— Charles Hoskinson (@IOHK_Charles) May 10, 2022
This came a few hours after Hoskinson reacted to Michael Novogratz’s show of love for Luna, asking why VCs love altcoins and hate Cardano (ADA).