I know the EMURGO team has been signing deals left and right with governments and other organizations to expand the ADA reach across the globe. These are all awesome and look to be helping to drive the adoption of cryptocurrencies, specifically ADA, into main stream use! However, I did have a question how all of this may impact ADA trading and price movement.
Specifically, I’m confused on a few things. When a government or company signs or announces these agreements what does that actually mean for ADA tokens?
For example, with the New Balance (NB) anti-counterfeit announcement would NB have to buy or own ADA to use it to track their supply chain? Similarly, for the Ethiopian government to track their coffee will they need to own ADA to do so?
My thoughts are that if this was the case the current owners of ADA would benefit as there would be some pretty large purchases made to use ADA by both of the above examples, thus driving the price of ADA higher.
Am I understanding all of this correctly? Asking for an ADA tech friend …
re ethiopia - it is not a cardano/ADA project but an atala (private) blockchain with it’s own token, at this stage i don’t even think a pilot program has been agreed so it’s extremely early and no set in stone. If the pilot goes through and if it is successful to the point that the Ethiopian government wants to pursue it then the only impact it will have on ADA will be indirectly since the proposed private block chain will interoperate with Cardano/ADA, ie if an ethiopian wanted to consume services on Cardano or enter the crypto marketplace for so other cryptocurrency then they will transit through Cardano/ADA
re New Balance - it’s quiet, we really haven’t heard anything yet… but this project is suppose to be on Cardano/ADA and any information/data stored on maintain will cost resources, so yes New Balance will need to fund adding this service with ADA, first by adding the data to mainnet and then by retrieving that data in the future (authentication of their products), it will likely be funded entirely by new balance for the benefit of new balance customers to confirm that their purchases were legit.
imho in both of these specific examples there is going to be minimal impact, if any, on the price of ADA. For me it’s not so much about these specific projects but rather how successful they are, If they prove to be of value then they will be replicated for other governments/products, once these use cases have been proven in the wild and blueprints have been set then we can see massive replication and adoption of these ideas - that would have a devastating impact (in a good way)
I agree with @franco that those two examples may not have a significant impact on price.
That said, any interaction between the Ethiopian Atala and Cardano blockchains, or the NB project are all just plans. Nothing can really be achieved until Goguen (and possibly Basho) is completed and who knows how many other projects are just waiting in the wings for that. I know I am
A larger volume of projects (inspired by trailblazers such as NB) will certainly have an effect on price.
Thanks to both for the reply! That makes sense to me now. Interesting about needing to wait until Goguen and Basho, I hadn’t thought of that for projects.
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