Cardano’s IOG Shifts to Venture Studio Model, to Develop Innovative Solutions14. Juni 2023
IOG Shifts to Venture Studio Model
• Input Output Global (IOG) is transitioning to a venture studio model, spinning out subsidiaries like Midnight, Lace, and Prism.
• Charles Hoskinson states that the company has been restructuring into a smaller core business model with many spin-offs.
• The Cardano founder also responded to the SEC’s allegations that ADA is a security.
Restructuring Into Smaller Core Business Model
Cardnao’s parent group Input Output Global (IOG) has moved to a venture studio model as part of its restructuring into a smaller core business model. Speaking on the development, Cardano founder Charles Hoskinson stated: IOG has been restructuring into a venture studio where its core is smaller and it has many spin-offs. As we move into this new business model, we’ve consolidated and eliminated groups that are redundant or not relevant to the new model.
Under the Venture Studio Model, IOG will be spinning out companies such as Midnight, Lace, and Prism. Here Prism will work as an identity framework; Lace will function as a wallet division; while Midnight will function for data privacy matters. According to Hoskinson, the approach involves hiring or relocating individuals to the subsidiaries while also restructuring the company to facilitate the spin-off of new entities. “Longer term I expect 3-5 companies per year to be spun out,“ he said.
Hoskinson Responds To SEC Allegations
Last week, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance, while naming Cardano’s native crypto ADA as a security. Hoskinson lashed out at the SEC stating that “The facts might be inconvenient to the SEC but are facts” He added: The financing was conducted in Japan and ADA was not sold which means it does not meet Howey Test requirements for something being classified as securities according to US law.“
CoinDesk Misrepresents Layoff Plans
The Cardano chief slammed crypto publication CoinDesk which mentioned that IOG is planning for layoffs when there have been no such plans discussed within IOG circles yet. He elaborated that Cardano already started moving towards this venture studio 18 months ago and said „Reading this seriously? We’ve been moving towards a venture studio model for 18 months in pretty public way“.
In conclusion, Charles Hoskinson’s move from his current venture studio model seems like an attempt at streamlining their operations by creating smaller more specialized teams who can focus on developing highly robust products like Prism, Midnight and Lace without any distractions from their core business operations . It remains seen if Cardano’s transition would result in success or otherwise but given Hoskinson’s track record so far it certainly looks very promising!