Cardano Corrects to $0.20 - But What is Fueling the ADA Downturn?


#1

Hi everyone. Want to share again interesting article about Cardano, that I received in my feed:

Source: https://cryptoncy.net/buzz/cardano-corrects-to-0-20-but-what-is-fueling-the-ada-downturn-83.html

In 2017, the announcement that Ethereum co-founder Charles Hoskinson was heading a new cryptocurrency project, sent Cardano prices soaring on Binance. In fact, at one point investors were so confident in Cardano, that the digital currency started being flagged as a potential Ethereum killer in the making.

Sadly, with Cardano prices pulling back sharply to $0.20, many early ADA investors are starting to have doubts about the digital currency. The only question is, should investors really be worried? Or might Cardano be about to rebound spectacularly this summer, as development of the ETH-like digital currency continues?

Why is Cardano Going Down in Value?

Did you buy Cardano in November but suddenly wish you hadn’t? If so, you might not want to lose faith in Cardano just yet. This is because if anything,Cardano might just be a victim of its own popularity.

In early December, Litecoin founder Charlie Lee took to Twitter to warn people to be careful when investing in Cardano:

“I just noticed Cardano (ADA) is #6 on CoinMarketCap. How did it become a $10B coin when it’s only 3 months old and the only major exchanges trading it is Bittrex and Binance and without even any fiat trading pairs?”

Needless to say, many interpreted Charlie Lee’s comments as a direct attack on Cardano. In reality, however, Lee was making a very salient point.

In December 2017, Cardano had barely just completed its initial ICO token sale. What is more, Cardano today is still months away from completed development. Many investors, however, simply didn’t realize just how far away Cardano’s completed development date still was. Instead, many simply saw that Charles Hoskinson was involved with ADA, and went all in on the digital currency.

How Long Until the Cardano Launch Date?

At present, the Cardano mainnet is already live. This means that Cardano as a cryptocurrency already benefits from proof of concept. At the same time, however, Cardano is still only 50% of the way through the ADA blockchains full development schedule.

As of March 2018, Cardno devs are still busy working on key features such as opensource community wallet support, quantum computing network resistance, and immutable ADA paper wallet token storage. What investors need to remember in this case, is that Cardano prices likely won’t peak until development is complete and real users start transacting and building blockchain applications on Cardano, just like businesses currently do on Ethereum.

How High Will Cardano Prices go When Development is Complete?

Despite the current loss of investor confidence in Cardano, it is safe to say that ADA will likely still rise to over a dollar in value as development continues.

Key Cardano Features & Benefits

Cardano will eventually enable fast (and near free) cross chain transactions of other cryptocurrencies like Bitcoin
Cardano will allow businesses to build more complex and scalable blockchain applications on ADA than will ever be possible with Ethereum
Cardano will be the world’s first (and only) cryptocurrency designed to be secure against quantum computer hacking
Plans are already underway to release a Cardano fiat currency payment card built directly into the ADA blockchain (and not issued by a transaction fee charging third party like LitePay)
Cardano is designed to be infinitely scalable
Cardano will hold value better than other cryptocurrency offerings, thanks to it being impossible to fork the ADA blockchain

Of course, it is impossible to predict just how high Cardano might go in value once development of the cryptocurrency is complete. It is worth remembering, however, that Ethereum (which ADA is purposefully designed to supersede), went from less than a dollar in value to over $1,000, in the space of just 12-months after bringing its own blockchain technology to market.


#2

Hi Jimmy, thanks for sharing. Here is my personal take. There are several mistakes in that article and the general paint is quite negative, very superficial, and shows a poor and rarely seen low level of research for a crypto media :

  1. ICO ended early January 2017 not at the end of 2017…

  2. This quote below:

What is more, Cardano today is still months away from completed development

==> Please let me know if you know a cryptocurrency which development is completed… It doesn’t exist. Development is a perpetual task. There are however various level of advancements, which is entirely different.

  1. He focused on Charlie Lee’s low-level attack while the most “serious” FUD spread against Cardano was Dan Larimer’s attempt to paint a negative view on Ouroboros’s PoS Consensus Algorithm.

  2. What is fueling the ADA downturn? Regardless of the advancements of the roadmap, this is a general tendency following Mt Gox’s trustee BTC sell-off early 2018 and ALL coins are suffering as you can see here: https://coincheckup.com/ It’s red everywhere.

It makes absolutely no sense to say “Why ADA is going down?” when every other coin of the industry is following the same trend. :slight_smile:

I would even say that it is an unreliable source of information. The author doesn’t give the impression to know what he is talking about nor does he appear very objective. And that is an euphemism. He is either lazy in his research or has sizeable investments in rival coins. Or most likely both :slight_smile:


#3

Its very simple, a lot of amateurs will come up with stories for this and that because they dont understand how markets operate or what they are involved in. It is the same phenomena we have with God and pre-historic history, everything they didn’t understand had to do with x, often a god. Its just how humans rationalize.

ADAs intrinsic value as of today is pretty much 0, there is no floor or ceiling. Anything above 0 is speculators pricing in expected value whether or not that will materialize is another story - since the intrinsic value is 0, the only thing determining the price is supply and demand of speculation and it will strictly adhere to market cycles.

Basically, “investor” sentiment.

Completing the technical aspect of Cardano will not give it any intrinsic value, that is just prerequisite for what will now be the real task. Only adoption and use-cases will give Cardano any intrinsic value.

ADA goes from 0.00024$ to 1.3$ for no reason, everyone thinks it makes totally sense… Ada falls from 1.3$ and 0.20$ for no reason, and suddenly everything is coming apart. The higher the price goes with nothing behind it, the harder it is to keep up for no reason. Simple as that.

and just to clarify Bitcoin and company is in the exact same predicament, their technology does not give them value.

What is the best to do is compare ADA to the crypto-market and not ADA to USD, to see how well ADA is performing. Because this is not just a bet on ADA, this is a bet on cryptocurrency… If Cryptocurrency as a whole fails, ada cant succeed no matter what, if cryptocuyrrency suceeds, then ADA can succeed in that environment.

If we look at ADA compared to the overall market, we are not crashing that hard, we are hanging in there fairly well taken into account how early we are in development. I mean we are in Top 10, what more can we expect.


#4

plz sell me ADA for $0.02 if any investor wants to run :kissing_heart:


#5

Hi CosmosX, thanks for your feedback. I am not an author of this article, just shared it here, and yes, I agree with you - there are some problems with facts (ICO end dates). But overall opinion about Cardano in this article is positive.