Hoskinson Pushes Back Against FUD Following Cardano Chain Split

Source: CoinEdition Original Title: Hoskinson Pushes Back Against FUD Following Cardano Chain Split Original Link:

Cardano Chain Split Incident

Cardano’s ADA crashed more than 16% in the past week as a malformed transaction triggered the blockchain’s first major chain split in nearly a decade. The incident sparked confusion and speculation across investors, but founder Charles Hoskinson stepped in to counter misinformation by posting a fact sheet detailing myths and realities about the November 21 incident.

Technical Details of the Chain Split

The split began at approximately 08:00 UTC on November 21, when a malformed delegation transaction exploited a deserialization bug dating back to 2022. The error caused newer node versions to accept the faulty input while older nodes rejected it, splitting the chain into two incompatible ledger states.

According to Intersect, the Cardano ecosystem organization that documented the incident, the network never went down. Blocks continued to be produced on both chains, though exchanges paused operations as they awaited consensus dominance. One major exchange experienced the longest halt, suspending ADA deposits and withdrawals for nearly 14 hours.

Developers across IOG, the Cardano Foundation, EMURGO, and Intersect mobilized quickly. Emergency patches were deployed within three hours, and by November 22 the network had naturally reconverged through standard Ouroboros consensus.

Developer Responsibility and Aftermath

An X user going by “Homer J” claimed responsibility for triggering the chain split. They described their actions as a careless attempt to reproduce a testnet anomaly, admitting they relied on incorrect AI-generated instructions before executing the damaging transaction.

However, Hoskinson rejected the framing of an accident, describing the incident as “absolutely personal” and asserting that federal authorities were already involved. He alleged that the developer’s actions were premeditated.

The involvement of federal investigators prompted an IOG Plutus developer known online as “effectfully” to resign publicly. They expressed concerns that ordinary development mistakes could now carry legal ramifications.

ADA Price Analysis

Cardano’s ADA trades near the $0.41 region as of the report. The weekly chart shows ADA continuing its long-term downtrend, defined by a persistent descending resistance line stretching back more than a year.

Meanwhile, the RSI remains in bearish territory, hovering near the mid-30s, while the MACD shows weakness without a clear bullish crossover. For ADA to break its structure, it needs a weekly close above the descending trendline, which currently sits near the $0.60 region.

If ADA rebounds strongly from the demand zone and breaks above $0.60, potential upside targets include $0.70 (0.236 Fib), $0.85, and $1. On the other hand, failure to hold the $0.34–$0.40 demand region could result in a drop to $0.32 and $0.20 (1.0 Fib).