- Cardano Foundation’s Michael Parsons allegedly made his stepson the general manager of the organization and refused publishing wallet addresses
- Former Cardano Foundation Council Member Pascal Schmid is now the new Chairman
- CEO of IOHK, Charles Hoskinson says the organization needs to work extra hard to restore its credibility in the Cardano ecosystem
Cardano Foundation, one of the three organizations in charge of the Cardano distributed ledger technology (DLT) project whose native cryptocurrency, ADA is the 9th largest crypto asset in the world, has replaced its Chairman, Michael Parson, over misconduct, according to a Finance Magnates report on November 14, 2018.
A Puzzling Conduct
Per sources close to the matter, earlier in October, Charles Hoskinson, the CEO of IOHK and Ken Kodoma , the CEO of EmurgoHK , the two organizations which in collaboration with the Cardano Foundation, are in charge of the Cardano (ADA) blockchain project, wrote an open letter, complaining that the Cardano Foundation wasn’t discharging its duties accordingly.
The primary objective of the Cardano Foundation is to “promote the Cardano protocol, grow and inform the Cardano community and address its needs,” however, a lack of activity and progress on the assigned responsibilities of the Cardano Foundation and its council have led to great frustration,” read the letter.
Hoskinson and Kodoma further explained that the Cardano Foundation lacks transparency, as it has refused to reveal where it holds its funds, misleadingly claiming it owns the Cardano trademark.
The letter also stated that the Foundation had been acting in a puzzling manner and failed to attend a meeting with the Ethiopian Ministry of Science and Technology alongside IOHK, informing IOHK via email that it (Cardano Foundation) “was to be the sole guardian of the Cardano brand and protocols.”
That’s not all, the letter also reportedly stated that Parson’s, who had been the head of the Cardano Foundation since 2016, made his stepson the general manager and his stepson’s wife his (Parson’s) assistant.
The replaced chairman also failed to add people to the available vacancies on the board, thereby automatically making the Foundation a family organization.
IOHK Takes Action Against the Cardano Foundation
In a bid to salvage the situation, IOHK reportedly stopped working with the foundation and mandated it to submit to an audit by the Swiss authorities, since the chairman could not be ordered to resign as the organization is an independent legal entity.
Michael Parsons has now relinquished his position and has been replaced by Pascal Schmid, a qualified accountant and former Council Member of the Cardano Foundation.
“Now that Parson’s has resigned, the Foundation needs to work very hard to restore its trust, faith and credibility within the Cardano Community,” said Hoskinson.
With a current price of $0.061 and a market cap of $1.60 billion, Cardano’s ADA is the native crypto of IronX cryptocurrency exchange from the stables of IronFX broker and the Cardano project remains one of the most solid cryptocurrency and blockchain projects in existence,