An independent audit is being conducted to answer the allegations of fund misuse during the Allegra hard fork. The value of ADA has gone up.
Charles Hoskinson, who is the founder of Cardano Audit and CEO of IOG, said that the audit report of ADA holdings will come by the middle of August 2025.
Hoskinson said in his X post on Sunday that he has seen the first draft of the report and has also asked for some further clarifications. The final report will be released to everyone in a few weeks.
Two famous companies are conducting this audit. McDermott Will and Emery is an international law firm with experience in blockchain and fintech, and the other company is BDO, a large audit and accounting firm with expertise in digital assets.
The purpose of the audit is to see what movements have taken place in the ADA held by IOG and which tokens have not been used yet, from the beginning to now.
When this report is ready, Charles Hoskinson will show the full report in a livestream. This report will also be published on a separate website where old documents related to the sale of Cardano will also be available.
Table of Contents
Why Cardano is Under the Microscope
The audit report is a response to the allegations of the Cardano community. It was alleged that IOG misused ADA worth about 619 million dollars during the Allegra hard fork of 2021, through a special genesis key.
Critics say that some tokens were moved without informing and without the permission of the community.
Charles Hoskinson has rejected this allegation. He says that most of the ADA was already claimed by real buyers in a period of 7 years. Whatever ADA had left was given to Intersect the organization that oversees Cardano Audit rules and systems.
Along with the audit, Hoskinson said he is considering taking legal action in collaboration with a defamation law firm against those making these allegations.
Hoskinson says this is all a well-planned false campaign to tarnish Cardano’s reputation
Cardano (ADA) Price Reacts to the News
After the announcement of the audit, the price of ADA increased by 5.77%. By Monday morning, the price of ADA reached 0.89 dollars, which is the first time it has reached this high since March.
The reason for this increase is that the trading volume also increased by more than 85%, which reached more than 2 billion dollars.
On the daily chart, the price of ADA is still going up and there is a chance of a strong breakout, but some crypto traders are still being cautious. They say that this could also be a fake-out, after which the price could fall back to 0.70 dollars.
But if you look at the long-term chart, the situation looks more positive. On the weekly chart, the MACD of ADA has turned bullish. The MACD line has moved above the signal line and a green candle has also appeared.
On the monthly chart, ADA has also crossed its monthly moving average. This has happened only after March 2020, and every time after this, the price has increased. This means that another price rally can be expected in the future.
Why This Matters
The audit of Cardano Audit is a rare example of transparency in the crypto world. Two independent firms are leading the investigation.
This report can help end the old community’s frustrations, restore trust in Cardano Audit system, and set a new example for blockchain founders to remain accountable
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People Also Ask:
What is Cardano?
Cardano is a new type of blockchain system that is fast, safe, and environment-friendly. Smart contracts can also be made on it. It runs on a Proof-of-Stake system, named Ouroboros.
Who created Cardano (ADA)?
Cardano Audit is created by Charles Hoskinson, who is also the co-founder of Ethereum. This project was started by IOHK company. Cardano Foundation and Emurgo also help it.
What is ADA?
ADA is Cardano’s own coin. People use it to send money, take stakes and vote in the decisions of the system.
What is the difference between Cardano and Ethereum?
Cardano uses less electricity because it uses a Proof-of-Stake system. Its design is divided into two parts – one for sending money and the other for running other apps. Its security is also very strong.
What is Cardano used for?
Cardano is used in DeFi apps, NFTs, smart contracts, education, supply chain and identity checking systems. It also focuses on easy connections and speed.
