Charles Hoskinson announces the decline of the third-generation cryptography

The founder of Cardano and co-creator of Ethereum, Charles Hoskinson, delivered a harsh assessment of the current state of the cryptocurrency ecosystem. In a statement released on December 25, 2025, he claimed that the “third generation of crypto” has reached its limits and can no longer support the industry’s ambitions.

A generation lost to speculation

Hoskinson points out the flaws that characterized this phase of development: an excessive focus on hype, the proliferation of scams, the inflation of meme coins lacking fundamentals, and a widespread culture of financial speculation. These elements, he says, have diverted the industry from its primary mission: building a robust and useful technological infrastructure.

The entrepreneur criticizes this approach that favors quick gains at the expense of creating tangible value. This trend has, according to him, compromised the credibility of blockchain in the eyes of users and institutions, slowing down the actual adoption of the technology.

Towards a more mature fourth generation

In response to this, Hoskinson proposes a strategic shift towards a “fourth generation” of blockchain development. This new phase would revolve around three pillars: concrete utility, enhanced privacy, and sustainable growth.

He presents Midnight, his privacy project, as an example of this new vision. The platform would adopt an approach where authentic use cases take precedence over speculation, and where blockchain technology focuses on practical applications capable of transforming real sectors: finance, healthcare, identity, etc.

A call for ecosystem maturation

Hoskinson’s intervention is a call for the collective maturation of the cryptocurrency ecosystem. It suggests that after a chaotic growth phase, the industry must reinvent itself around stronger principles and a long-term vision, far from the ephemeral turmoil of speculative trends.