Charles Hoskinson, co-founder of the Cardano blockchain network, said he is considering acquiring CoinDesk, the media arm of the struggling Digital Currency Group, saying journalistic integrity needs to be restored to reporting on cryptocurrencies and blockchain. CoinDesk is reportedly exploring a sale.
See related article: DCG’s crypto lender Genesis files for bankruptcy
Fast facts
- “My interest on the media side is more broad… I would like to figure out how to get to journalistic integrity again,” Hoskinson said in a YouTube livestream on Thursday in the U.S.
- Cardano’s ADA cryptocurrency is one of the top 10 tokens, according to CoinMarketCap rankings, with a market capitalization of about US$11.7 billion.
- Hoskinson said he estimated it would cost US$200 million to purchase CoinDesk and that he will review the financial data before making a decision. CoinDesk has hired Lazard Ltd as financial advisors to explore a sale of the online crypto news company, the Wall Street Journal reported this week.
- Hoskinson said providing financial incentives to readers and the blockchain community could be a decentralized way of holding crypto media more responsible for accuracy. “Things like veracity bonds or other concepts where, when someone publishes something … they actually put money on the table, and if it turns out the thing that they’ve written isn’t true or inaccurate, they actually can lose the money.”
- Hoskinson also said that such financial incentives can prevent Cardano’s influence over independent reporting, which will draw readers to actively verify, question and interact with the reporting.
- Genesis Global Capital, the crypto brokerage arm of Digital Currency Group, filed for bankruptcy on Thursday in New York after the failure of the FTX.com exchange left it saddled with debt.
- DCG did not immediately respond to Forkast’s written request for comment on CoinDesk’s sale.
See related article: Digital Currency Group receives offers to buy CoinDesk: report