Consider Selling Cardano (ADA) Now
If you’re holding ADA, K33 Research thinks you might want to rethink your investment. The researchers believe that Cardano is lacking a clear and important use case for its native token, ADA. They argue that a smart contract network needs a good reason for its token to have value, which they believe Cardano lacks.
K33 Research points out that while Cardano processes around 90,000 transactions per day, these transactions aren’t contributing significantly to the blockchain. They claim that there’s not much happening on the network other than token transfers.
Absence of Stablecoins on Cardano Blockchain
One major red flag for Cardano is the absence of stablecoins like USDT and USDC on its network, according to the report. This suggests that there isn’t much important decentralized finance (DeFi) activity happening on Cardano. The stablecoins on Cardano are said to be backed by the network and valued at 76 cents to the dollar, which K33 Research dismisses as “another word for nothing.”
The Future of Cardano
K33 Research isn’t optimistic about Cardano’s future, comparing it to other blockchain projects that started strong but later lost their appeal. They believe that Cardano’s current market value of $19 billion is mainly due to availability on various crypto exchanges and attracting new investors.
The report criticizes the narrative surrounding Cardano, describing it as confusing “scientific mumbo-jumbo” that might mislead newcomers to crypto. K33 Research anticipates a decline in Cardano’s appeal and questions its long-term viability, suggesting that ADA may become less important in the crypto world in the future.
Hot Take: Bearish View on Cardano
K33 Research’s skeptical view of Cardano’s future raises concerns about the lack of a clear use for the ADA token, potential decline in appeal, and the absence of significant activity on the Cardano network. If you’re holding ADA, you might want to consider these factors before deciding on your investment strategy.
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