The article from Bloomberg (link below) definitely tempers my expectations. According to the article about half of the volume on coinmarket cap for Ether and Bitcoin is actually half of what it says.
Could it be 98% of Cardano trades are just are whales moving around money to accounts they already own?
If that is the case, what benefit does DPOS actually have for the majority of the stakeholders?
I’m all about helping the folk in Africa get the financing they need for their coffee beans and other actual economic benefits that this project will provide. But until it does those things who can really say what the return on investment will be.
As a new member to the community, I am extremely excited about the prospects of making money. However, I am deeply skeptical in regard to market manipulation. Who actually knows what were in for over the next few months. Hopefully its not a bunch of extreme expectations that are never realized.
I apologize for the bearish tone but there are some realities out there that we need to consider while waiting for our lambos, namely continued market manipulation and illusory power to the people notions.
Here is a link to the article.
This doesn’t make sense at all. Why would they move their money through exchanges where they need to pay for transfers?
The article says the transfers are cheap. They do it to create the illusion of volume to get people to buy it.
The article says, “At one point, 98 percent of transactions on the digital token Cardano had no economic value, Coinmetrics said.”. I have found no further details both in the article or Coinmetrics itself that sheds more info on when this particular point is.
The most relevant article is https://coinmetrics.io/difficulty-estimating-chain-transaction-volume/ dated January 18 when Cardano was only listed about 2 months. To say there would be significant economic activity in this ecosystem 2 months in is a bit of a stretch.
Fast forward June 15, https://coinmetrics.io/erc-20-update/, Coinmetrics admits they have undercounted ERC20 transactions. It’s great they are being transparent but this also goes to show the data may not have been accurate in the first place.
My point is, take the Bloomberg article with a grain of salt. Also, smart contracts aren’t even launched yet on Cardano so there’s no economic value to be derived at the moment anyways, hence, the price is entirely speculative. Until companies starts to use Cardano in their business needs and starts budgeting accordingly on how much ADA to store for use cases, then I think we can start seeing some real analytics.
I will say that 100% of my Ethereum transactions to date have been buying alt coins (such as Ada). Are these considered non-value transactions and just moving crypto around? Wait, I did once pay some Eth to post a “hello world” message on Pepeeth.