Charles Hoskinson Breaks Silence on USDM Collapse and Cardano’s Stablecoin Future

Cardano founder Charles Hoskinson has spoken out following the collapse of USDM’s leadership and the financial setbacks facing the stablecoin project. Hoskinson’s recent tweet shows that the blockchain platform remains firmly behind the USDM initiative despite ongoing instability.

USDM, developed by W3i Software, faced a major blow after CEO Matthew Plomin’s death due to health complications on November 14, 2024. The event started the internal disaster recovery plans as the team tried to operate through the leadership crisis.

Since then, W3i Software has filed an amendment with the US Securities and Exchange Commission, which openly identifies key changes to its financial and business position. These are telling moments in the destiny of Cardano-based stablecoin.

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The SEC filing revealed that W3i Software is undergoing a significant corporate reorganization. This includes a 50% fall in the company’s pre-money valuation, which is now down to $20 million from $40 million. The filing also describes a new investment agreement with Input Output Global, Hoskinson’s firm, for a $1.5M preferred stock purchase at $1.00 per share.

Leadership Void and Financial Turmoil Prompt Urgent Strategic Realignments

According to the filing, the deal terms include liquidation preferences, board representation, and seven-year redemption rights. An additional $500,000 investment can be made 18 months after the initial closing.

W3i Software also raised complaints about its dependency on the Cardano blockchain. The company recognized that the incomplete development roadmap for Cardano exposes risks to USDM’s ongoing innovation and delivery timelines. The ambiguity in Cardano’s infrastructure could affect further technical development and business results.

While encountering these challenges, Hoskinson wanted to stabilize the community by ensuring that Cardano’s ecosystem was still committed to supporting decentralized finance projects such as the USDM. In his public pronouncement, there is a renewed belief that long-term development on the Cardano blockchain is still possible with strategic intervention.

With new funding and a leadership change in an office, USDM is trying to get back on its feet as a player within the Cardano ecosystem. The future of the stablecoin remains questionable, but the support of Cardano’s founder eases the attempt to survive.

Conclusion

USDM’s future is closely tied to investor confidence and Cardano’s roadmap. Hoskinson’s endorsement may offer temporary relief, but the project faces real challenges as it navigates leadership loss, valuation cuts, and blockchain dependencies.

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