Cardano Founder’s El Salvador Drama: A Tale of Magma and Gangs 🌋💰

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It is a truth universally acknowledged, that a blockchain innovator in possession of a good fortune, must be in want of a nation to adopt his currency. Yet, Mr. Charles Hoskinson, the founder of Cardano, has declared that he was not in want of El Salvador, despite the country’s fervent desire for his blockchain expertise.

In a recent discourse on the Shawn Ryan Show, Mr. Hoskinson recounted a week of most peculiar and chaotic encounters with the administration of President Nayib Bukele. The gentleman alleged that the proposed airdrop of cryptocurrency to the citizens of El Salvador, including members of the notorious MS-13 gang, was a matter of grave concern, risking the ire of the United States and its stringent sanctions.

Chaotic Encounters

Mr. Hoskinson painted a vivid picture of the Salvadoran government’s disarray during his visit in 2021. He described meetings with officials of the most eccentric nature, including a Minister of Energy who, with a flourish, declared, “The power of magma will be the destiny of El Salvador,” as he pitched plans for a geothermal-powered Bitcoin mining hub.

The blockchain innovator further lamented the lack of structure in the implementation strategies for the national adoption of Bitcoin. “We asked, what are the compliance guidelines for adopting cryptocurrency here? [They said] ‘We don’t have any,’” Mr. Hoskinson reminisced, with a shake of his head. “Where are you getting your business requirements? They said Facebook.”

However, the crux of the matter, as Mr. Hoskinson recounted, was the U.S. consultations. It was revealed that President Bukele’s intention for a universal airdrop would, in Mr. Hoskinson’s view, funnel cryptocurrency to MS-13, a Transnational Criminal Organization as designated by the U.S. Office of Foreign Assets Control (OFAC). “Bukele, for example, wanted to do an airdrop to everybody in El Salvador,” Mr. Hoskinson stated, with a note of exasperation. “And we’re like, okay, but MS-13 is on an OFAC list. And so if we give Bitcoin to all these people, we’re facilitating a transfer of value to a terrorist organization. That’s no bueno.”

He also added that coordination with U.S. authorities was an exercise in futility, particularly under the Biden administration, which he claimed adopted a “regime change” stance towards President Bukele. “We just couldn’t get there. So, we passed on the deal after a week,” he concluded, with a sigh of relief.

Despite Mr. Hoskinson’s withdrawal, El Salvador proceeded with its Bitcoin adoption, making it legal tender and launching the government-backed Chivo wallet. Mr. Hoskinson admitted that the move was historic, with the Central American nation currently holding 6,230 BTC, worth about $679 million. “It was a very pivotal moment,” he said. “It actually made Bitcoin the official currency and it forced the IMF, and it forced all the transnational bodies to actually start recognizing Bitcoin.”

Market Reaction

The explosive claims elicited swift skepticism, with Bitcoin advocate Cory Bates questioning the narrative’s accuracy: “I have a feeling this is not quite how the story went.” Pseudonymous analyst The Bitcoin Therapist was more blunt, calling it the “dumbest sh*t I’ve ever heard.”

Neither President Bukele’s administration nor U.S. officials have publicly verified Mr. Hoskinson’s account. Meanwhile, Cardano’s native ADA token is showing modest resilience. At the time of this writing, it was trading at $0.5768, up 2.0% in the last seven days, slightly outperforming the broader crypto market. However, it remains down 12.5% over the last month and significantly lags its September 2021 all-time high of $3.09.

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2025-07-08 13:04