- Grayscale rebalanced its portfolios, removing Cardano (ADA) and Cosmos (ATOM), adjusting allocations in GDLC and GSCPxE Funds.
- Charles Hoskinson defends Cardano’s advantages, highlighting scalability, governance, and a supportive community amidst changes.
- Hoskinson criticises the industry’s short-term mentality and highlights the importance of foundational strength and community support.
Grayscale Investments, recognised as one of the world’s largest crypto-asset managers, last week announced the updated Fund Component weightings for their portfolio products – Grayscale Digital Large Cap Fund (GDLC), Grayscale DeFi Fund (DEFG), and Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund) – following their first quarter 2024 reviews.
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Changes Made Include Removal of ADA, ATOM
In this rebalancing, GDLC removed Cardano (ADA) from its portfolio, reallocating the proceeds into existing components like Bitcoin (70.96%), Ethereum (21.84%), Solana (4.52%), XRP (1.73%), and Avalanche (0.95%).
The DeFi Fund’s composition remained unchanged, featuring assets like Uniswap (48.74%), MakerDAO (20.41%), Lido (13.17%), Aave (9.99%), and Synthetix (7.69%).
GSCPxE Fund saw the removal of Cosmos (ATOM), with the fund now comprised of Solana (58.41%), Cardano (14.56%), Avalanche (12.25%), Polkadot (8.53%), and Polygon (6.25%). None of the funds generate income, and they distribute components over time to cover ongoing expenses, leading to a gradual decrease in the amount represented by shares.
Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund), source: Grayscale
Cardano Creator Charles Hoskinson Reacts
Charles Hoskinson, Cardano founder and co-founder of the Ethereum network, is known for his controversial posts on social media – and on the weekend he posted a lengthy response that appears to be a reaction to the Cardano exclusion from one of the Grayscale products.
Hoskinson said the Cardano ecosystem is in possession of all the advantages:
We have the best path for scalability, governance, and innovation. We also have the best community.
Charles Hoskinson The IOHK CEO said significant changes are on the horizon, notably through advancements with SanchoNet, with Ouroboros Leios marking an unprecedented stride towards addressing the blockchain trilemma.
Additionally, he noted that their research labs are scaling up, with now “209 papers with much faster research translation.”
Hoskinson said the strength of the ecosystem is undeniable, given its capacity to mobilise millions, and a proven track record of reliability with continuous uptime.
I wouldn’t bet against an ecosystem with the ability to engage and unlock millions of people, has an on-chain sovereign wealth fund, and has never failed in 2300+ days of uptime 24/7.
Charles Hoskinson He criticised the short-term view many have in the industry with a number-go-up mentality – adding that success lies in the foundations that can endure through generations, supported by a community that values and upholds these principles.
The problem with our industry is that we let short-term narratives and carnival barkers dominate the conversation. AI has the same issue. A few months ago, Open AI dominated everything, then claude 3, now we got Grok 1.5, and soon Llama 3.
Charles Hoskinson Related: Anthony Scaramucci Predicts Wild Run For Bitcoin Post Halving, 10X Incoming?
It remains to be seen if Hoskinson is right, after all timing is important. Without it, even the most well-planned projects may struggle to achieve their potential or remain relevant in a highly competitive environment.
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