Cardano founder Charles Hoskinson recently dismissed a report tarnishing the image of the crypto’s blockchain ecosystem. According to the report, the network currently has almost no real-world utility compared to other major cryptocurrencies like Bitcoin and Ethereum. The report also noted that despite its huge daily transaction count, Cardano’s native token, ADA has mostly been speculative.
Hoskison Dismisses Damning Report On Cardano
Cardano has grown to become one of the biggest cryptocurrencies in terms of market cap. Despite this, a detailed examination from K33 Research earlier in the week hinted that its network activity has been nothing but fabrications. The report, titled “Why you should sell all your ADA (Cardano),” compared activity on the Cardano network to other altcoins like Ethereum, Solana, and Avalanche.
Despite Cardano averaging 90,000 transactions every day, the report argued that most of these are being fabricated by a few bagholders, as the network has no outside activity apart from blockchain data and trading on exchanges.
The major point of the report’s critique was the stablecoin market on Cardano, which has largely been absent. According to the report, the lack of USDT and USDC on the Cardano blockchain suggests that stablecoin issuers Tether and Circle are aware of the lack of real activity on the network.
The report seems to have gathered attention from ADA investors, with many rejecting the report’s reliability. Particularly, Charles Hoskinson questioned who the research company was in a comment on social media, implying a disregard for the report.
“Who? Never heard of them,” he replied to a post that called for his comment.
ADA total market cap is currently at $18.3 billion. Chart: TradingView.com
A popular Cardano enthusiast, known as ADA whale on social media, also dismissed the report, stating that it lacked sufficient information regarding the blockchain network.
What’s Next For ADA?
This isn’t the first time Cardano has faced such a claim, and instant rebuttals of reports like this have raised concerns about the network’s ability to address such arguments. However, according to weekly development reports, the network’s development activity has been on a steady rise. At the time of writing, there are 157 projects launched on the chain with 1,319 still under development.
In terms of price action, ADA has been on a downtrend since January 11 amidst a general price decline amongst major altcoins. At the time of writing, ADA is trading at $0.5153, down by 5.7% in a 7-day timeframe.
According to a crypto analyst, the price of ADA could explode more than 1,300% if history repeats itself. Crypto analyst Ali Martinez noted that the current ADA consolidation mirrors its late 2020 behavior which led to a 2,980% surge in the months after. A repeat of this surge would see ADA starting an upswing around April and then to a price target of $7.
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