Cardano founder blames institutional pump-and-dump schemes for market slump

Cardano (ADA) founder Charles Hoskinson has accused large institutions of manipulating prices and causing the downturn in the cryptocurrency market, according to The Crypto Basic. He argued that these institutions employ a crypto stockpiling strategy to artificially inflate prices before executing large-scale sell-offs, effectively crashing the market. Hoskinson specifically pointed to firms like U.S. hedge fund Citadel, claiming they drove up market prices before switching to short positions, reaping tens of billions of dollars in profits. This process, he asserted, left crypto market makers and retail investors with substantial losses and is the primary reason for the market's slow recovery. Hoskinson stated that this behavior has become a standard practice, with institutions greedily profiting while retail investors repeatedly suffer, having learned nothing from the 2021 bull market. While noting that the market is showing gradual signs of recovery amid lingering uncertainty, he suggested that the passage of the CLARITY Act, a crypto market structure bill, in the U.S. next year could help restore stability and trust. He projected that the bill could spur crypto adoption and potentially see Bitcoin reach $250,000 by the end of 2026.