Key Takeaways
- Charles Hoskinson has alleged a conflict of interest as to why Cardano, Ripple, Algorand, and others were snubbed from a Wyoming State stablecoin project.
- The Cardano founder has hinted at a class action lawsuit and suggested excluded blockchains considered the same.
- The Wyoming Stable Token is scheduled to launch in Q1 2025.
Cardano (ADA) founder Charles Hoskinson has hinted at potential legal action against the U.S. State of Wyoming for excluding the blockchain network from its stablecoin project.
He’s also concerned about the blockchains that may be selected for the project, citing potential conflicts of interest within the decision-making process behind the scenes of the Wyoming Stable Token (WST) project.
Cardano and Ripple Snubbed
Hoskinson explains that despite Cardano being involved in the early stages of the Wyoming Stable Token (WST) project, the network had been excluded in the final phases of the project.
In a video, the Cardano founder shared that the ones who made the cut were Solana, Avalanche, Stellar, and Ethereum, inclusive of layer-2 networks like Polygon, Arbitrum, Base, and Optimism.
Displeased at the Cardano and Ripple (XRP) snub, which the commission said did not meet the project’s specific chain requirements to support the WST.
Bemused, Hoskinson highlights that somehow, high-utility chains such as Tezos, Algorand, and others were also overlooked.
“So let me get this straight. Apparently, Stellar can do stuff that Ripple can’t do according to the scoring criteria,” Hoskinson said.
Legal Action?
Hoskinson alleges that the selection process is opaque and has been burdened by a conflict of interest.
He states that “it’s interesting” how former Consensys and Circle employees can operate “as judge and executioner” for which chains qualified within a publicly funded project.
“And by the way, there might even be a class action (lawsuit) because anybody excluded certainly has standing, this creates an unfair competitive advantage to those chains selected, and an unfair disadvantage to those chains not selected since it’s not an opaque process and normal procurement wasn’t followed.”
Hoskinson later posited that the exclusion amounted to a violation of the State’s good-faith procurement laws, argues Cardano was denied a fair seat at the table, and is concerned that the selected blockchains would actually drive value away from the project.
He also made numerous statements throughout the process, saying the coin should be launched first on Ethereum before other chains, demonstrating a bias towards a particular technology.
Hinting at legal action, he explains that “several lawmakers” who had backed the WST bill have contacted the WST commission and governor and expressed concerns, explaining that the move failed to “reflect their wishes with the bill and hurts Wyoming.”
Charles Hoskinson has suggested that the excluded chains take legal action against the WST and called on the community to contest the selection decisions and advocate for transparency in the process.
Wyoming Stablecoin Project
After passing the Wyoming Stable Token Act in March 2023, work began creating the U.S. dollar-backed WST token, and it’s set to launch in Q1 2025.
Wyoming is still vetting partners and vendors to establish rules on how the token operates and assist in its rollout.
It’ll need a wallet provider and an exchange that will issue it to the user. After this, it’s intended to be used for typical everyday spending needs across the country.
The stablecoin is to be backed 102% by U.S. dollars and short-term Treasuries. It has an interesting public lean, too, as the commission intends to reinvest reserves into more Treasuries and reverse repos. The interest gained from this will go towards funding its public schools.
The State of Wyoming has big aspirations. Looking ahead, it intends to leverage the same technology and broaden its capabilities to enable more tokenization. This includes gold, oil, real estate, and “other governmental obligations.”
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
