Cardano Founder Claps Back: Urges Investors to Stand Firm Against Crypto Report's Dump ADA Call

Cardano founder Charles Hoskinson has responded to a critical report questioning the utility of Cardano's blockchain ecosystem. The report, titled "Why you should sell all your ADA (Cardano)," raised concerns about the network's real-world utility compared to other major cryptocurrencies like Bitcoin and Ethereum. Despite Cardano's significant market cap, the report suggested that its daily transaction count is mostly speculative and lacks real activity.

Key Points from the Critical Report:

1. Network Activity Fabrication: The report, from K33 Research, claimed that Cardano's network activity is largely fabricated, comparing it to other altcoins like Ethereum, Solana, and Avalanche. It argued that despite an average of 90,000 daily transactions, most are generated by a few bagholders, with minimal outside activity beyond blockchain data and trading on exchanges.
2. Stablecoin Market Critique: The report highlighted the absence of major stablecoins like USDT and USDC on the Cardano blockchain, suggesting that stablecoin issuers Tether and Circle may be aware of the lack of real activity on the network.

Hoskinson's Response:

Charles Hoskinson dismissed the report, questioning the credibility of the research company. In response to a social media post about the report, he stated, "Who? Never heard of them," indicating a lack of regard for the findings.

ADA total market cap is currently at $18.3 billion. Chart: TradingView.com

Investor Reactions:

ADA investors, including a prominent Cardano enthusiast known as ADA whale, also rejected the report, citing insufficient information about the blockchain network.

Cardano's Development and Price Outlook:

Despite such criticisms, Cardano's development activity has reportedly been increasing steadily, with 157 projects launched on the chain and 1,319 still under development.

In terms of price action, ADA has experienced a downtrend since January 11, trading at $0.5153 at the time of writing, reflecting a 5.7% decline in a 7-day timeframe.

Crypto analyst Ali Martinez suggested a potential explosive price movement for ADA, drawing parallels to its late 2020 behavior that led to a significant surge. If history repeats itself, ADA could experience a more than 1,300% surge, starting an upswing around April with a price target of $7.