Cardano founder Charles Hoskinson has publicly expressed his support for the blockchain’s Stablecoin ecosystem following the major challenges facing one of the key players. In a recent tweet, Hoskinson dealt with an ongoing situation in USDM, a stubcoin project built on Cardano that he encountered several set-offs.
Mathew Promin, CEO of USDM, passed away on November 14, 2024 due to health complications. They implemented several existing disaster plans for their operational needs. Despite the tragedy, Hoskinson’s message conveyed optimism about the project’s resilience and its future prospects.
We support the Cardano Stablecoin ecosystem and want to grow and thrive. USDM has suffered several major hits including the death of the CEO, but has risen and bright future https://t.co/y3rao45hnm
– Charles Hoskinson (@iohk_charles) May 8, 2025
His comments came in response to the news that W3I Software, the company behind USDM, has submitted revisions to the SEC, highlighting some important updates to its business status.
SEC submission revealed USDM’s financial restructuring
SEC Filing has disclosed three major changes to the W3I software. This involves reorganization at the executive level, a 50% reduction in money valuations of $40 million to $20 million, and an investment of $1.5 million from the Input and Output Global.
According to the February 2025 revision, the input output affiliate entered into a non-binding term sheet with $1.00 per share of W3I software for Series A preferred stock funding. The agreement includes standard preferred stock provisions such as liquidation appetite, protection provisions, board representatives and seven-year redemption rights.
Related: Top analysts say Cardano is heading in the right direction, then share breakout targets
Investment terms also include the option of purchasing an additional $500,000 worth of preferred stock at the same ratio in the 18 months after the closure. SEC filing of W3I software acknowledges some risks built on the Cardano blockchain. The report states, “We are building our products on Cardano blockchain and relying on the progress of its development.”
The company makes it clear that Cardano’s incomplete roadmap introduces uncertainty to the company. Additionally, it creates uncertainty about future development, innovation and implementation timelines. Hoskinson’s general support for USDM comes at a critical time for the project as it experiences leadership transitions and fiscal restructuring.
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