The newly-installed head of crypto project Cardano's foundation in Switzerland said investor assets are safe amid a governance spat.
The Cardano Foundation on Friday rushed to assure investors that its assets are secure after its head was swapped out following a major disagreement with the technology's author.
«The Cardano Foundation announced today that leadership has been duly transferred to Pascal Schmid and that the foundation's assets have been fully secured,» it said in a statement.
The statement follows the replacement of Michael Parsons (pictured below) as the head of the foundation, following a petition for his removal. He had been publicly accused by Cardano co-founder Charles Hoskinson of poor performance, consolidating power in the foundation, and nepotism.
Rigid Structures
The spat highlights the perils of investors plowing money into Swiss foundations set up to govern funds raised by crypto projects. Cardano, like Tezos and Ethereum, set up a foundation in Switzerland to safeguard its assets. As with Tezos, where a bitter fight broke out, Swiss foundations wield vast influence in a rigid legal structure: Parsons was accused of effectively acting alone and installing his wife and stepson at the foundation.
On Thursday, Parsons stepped down of his own volition. Fellow foundation council member Pascal Schmid took over running the foundation. The foundation links up with Cardano's other two arms: IOHK, run by Hoskinson, is responsible for developing the project's protocols.
Investors Spooked
Emurgo, run by Kem Kodama, is responsible for clinching partnerships with developers and fostering Cardano's real-world use. Hoskinson, who co-founded Ethereum, and Kodama attacked Parsons last month, calling for him to step down. The spat spooked investors in Ada, the token based on Cardano's protocol.
«The secure asset base allows Cardano Foundation to continue to drive Cardano's ambitious development projects as planned,» Schmid said. After Parsons' departure, Hoskinson said he welcomed the end of the «Babylonian captivity» of Cardano and voiced hopes the foundation would devote more resources to the Japanese market.
