On-Chain Claims Renew Scrutiny of 1.5B ADA Transfers in 2021
On-Chain Analysis Revives Claims of 1.5 Billion ADA Sale by Charles Hoskinson During 2021 Rally – Allegations Emerge Amid Governance Turmoil and Price Decline
Key Takeaways
– An NFT creator published on-chain tracing analysis alleging that approximately 1.5 billion ADA may have been sold during the 2021 bull market.
– The analysis links large ADA transactions to stake pool pledge flows associated with Input Output Global (IOG).
– Charles Hoskinson has not publicly responded to the latest claims.
– ADA is down 42% over the past 30 days and more than 94% from its September 2021 all-time high.
– The allegations surface during an ongoing governance crisis within the Cardano ecosystem.
New On-Chain Tracing Connects Large ADA Transfers to IOG-Linked Pools
An independent on-chain analysis has renewed allegations that Cardano co-founder Charles Hoskinson sold roughly 1.5 billion ADA during the 2021 market rally. The claims were published by NFT creator Masato Alexander, who shared a detailed thread outlining transaction tracing conducted on the Cardano blockchain.
According to Alexander, his work revisits a May 2025 claim that Hoskinson sold approximately 1.5 billion ADA during the 2021 hype cycle. Rather than relying on earlier statements, Alexander said he reviewed blockchain records directly to trace the movement of large ADA transactions.
The updated analysis focuses on a 925 million ADA transfer and nine separate 20 million ADA payments. Alexander stated that these transactions share a closer common ancestor than Input Output Global’s genesis unspent transaction output, commonly referred to as a UTxO. He wrote that the number of intermediate transaction hops between IOG and the transfers was reduced from roughly 40 to between one and seven.
The tracing centers on stake pool pledge flows. On Cardano, stake pools require an owner and pledged ADA. Alexander argued that IOG’s on-chain footprint extended beyond its original genesis allocation and that approximately 21 of 64 million ADA pledge amounts from IOG’s private pools were consolidated in the traced flows.
He published a transaction graph, a flow visualization, and raw identifiers linked to Cardanoscan records. At the same time, he emphasized that the analysis represents a best-effort review of public blockchain data and does not conclusively establish control over every wallet involved.
Limitations of UTxO Analysis and Absence of Direct Proof of Sales
The on-chain tracing does not establish who controlled the wallets associated with the transactions. It also does not demonstrate whether the funds were transferred to exchanges or whether contractual or allocation restrictions applied to early ADA holdings.
UTxO ancestry analysis can identify common funding sources, but without off-chain documentation it cannot determine whether specific transfers constituted token sales or who authorized them. The published material therefore narrows the scope of inquiry to transaction relationships rather than providing direct evidence of liquidation.
Charles Hoskinson has made no public statement addressing the new analysis and did not respond to a request for comment from The Defiant. The Cardano Foundation, one of three founding entities alongside IOG and Emurgo, said in an emailed response that it has no insights into the reported transactions referenced in the social media thread. The Foundation added that it has no reason to assume anything other than professional conduct and reiterated its commitment to the long-term success of the Cardano blockchain.
Previous Allegations Involving Genesis Keys and Voucher Redemptions
The latest claims follow earlier allegations raised by Alexander concerning Cardano’s genesis keys and the Allegra hard fork in 2021. In that earlier thread, he alleged that genesis keys were used to move ICO and voucher-related UTxOs, redirecting roughly 318 million ADA into Cardano reserves.
Hoskinson previously denied that IOG appropriated hundreds of millions in unclaimed ADA. A Cardano redemption transparency report stated that 99.2% of vouchers, representing 99.7% of ADA sold through the voucher program, had been redeemed. The report acknowledged that 390 unredeemed vouchers representing 318 million ADA were swept to the reserve at the close of Byron-era redemption, while retaining a post-sweep path for remaining holders.
Alexander’s latest thread does not directly revisit the genesis key issue. Instead, it focuses specifically on identifying shared funding ancestors for the 925 million ADA movement and the series of 20 million ADA transfers.
Governance Disputes and Ecosystem Challenges Form the Backdrop
The renewed allegations come during a period of governance tension within the Cardano ecosystem. In early June, Hoskinson warned of a wave of failures following the shutdown of TapTools, described as the network’s most-used analytics platform.
The Cardano Foundation cancelled the Cardano Summit 2026 after a 7.8 million ADA treasury proposal failed to secure the required two-thirds supermajority under the Voltaire governance framework. In addition, a 32.9 million ADA IOG research budget proposal faced approximately 87% opposition from delegated representatives.
Hoskinson briefly posted that he was taking a break before later stating that he was not leaving. He also raised the possibility of splitting the Cardano blockchain and launching a proof-of-burn successor chain as a potential response if the governance impasse continued.
ADA Price Decline and Network Metrics
At the time of reporting, ADA was trading at $0.1623. The token has fallen 22% over seven days and 42% over the past 30 days, according to CoinGecko data cited in the report. From its September 2021 all-time high of $3.09, ADA has declined 94.74%.
Cardano’s total value locked stands at approximately $93 million, according to DefiLlama. The network is currently outside the top 25 chains by this metric. The period under review in the on-chain analysis coincides with the 2021 market peak, when ADA reached its highest recorded price.
Our Assessment
The published on-chain analysis highlights transaction linkages between large ADA movements in 2021 and stake pool pledge flows associated with IOG. The material does not establish wallet control or confirm whether the transfers constituted market sales. The allegations emerge at a time of governance disputes, proposal rejections, and significant price declines for ADA. For market participants, the situation underscores the interaction between blockchain transparency, governance processes, and token performance within the Cardano ecosystem.
