Cardano’s native token ADA has been the subject of a scathing report from prominent research firm K33, which suggests the cryptocurrency is on a downward trajectory due to a lack of significant activity and use cases. Highlights of the report include claims that Cardano has no traction, is not being used in a meaningful way and will become worthless over time, calling it a victim of the “greater fool theory.”
Cardano’s native token ADA has been the subject of a scathing report from prominent research firm K33, which suggests the cryptocurrency is on a downward trajectory due to a lack of significant activity and use cases. Highlights of the report include claims that Cardano has no traction, is not being used in a meaningful way and will become worthless over time, calling it a victim of the “greater fool theory.”
In response to these claims, Charles Hoskinson, the founder of Cardano, dismissed the think tank with a terse “Who? I’ve never heard of them.” This response, however, did not sit well with everyone, drawing criticism from those who believe that such a response does not adequately address the concerns raised by K33. Critics urge Hoskinson to counter the report’s points, highlighting K33’s significant reach and influence in the research space.
Some argue that ignoring a research firm’s analysis is not the solution, suggesting that a more complete rebuttal could be more beneficial to the ADA’s reputation.
ADA’s strong start
Despite the report’s gloomy outlook, Cardano’s performance tells a different story, especially in recent times. Throughout 2023, ADA showed poor performance, reflecting the slowdown of the broader crypto market. However, the tide appears to be turning in 2024. In the last 10 days alone, Cardano has seen an 8% price increase, indicating a resurgence in investor confidence. Since December 2023, ADA is up over 40%, showing a strong recovery and contradicting the report’s dire predictions.
This positive price action could reflect a broader recognition of Cardano’s potential. The network has made significant progress on its development roadmap, with milestones aimed at improving scalability and introducing new functionality. Additionally, Cardano’s commitment to peer-reviewed research and scientifically driven development often sets it apart in a space where many projects are quickly commercialized but slow to execute.
