Losing value


#1

Why do you think Cardano always loses value quicker than other coins whenever the market goes on a downturn? I know it is very early in development but most crypto currency projects are so I dont really see this as being a factor. It also tends to spike alot faster when the marker improves, but then struggles to hold its value.


#2

From a personal perspective, many currencies are held by too few. This creates “whale manipulation”. For that, consider earlier projects most are aware of. I have done a rudimentary “reactionary” tesing on a popular website. The response I generated easily could have led to additional observation. For instance, specific sites are concentrated in user base/duplicate accounts by currency. I wont get into specific sites, but it then creates momentum either way. Most times that itself is multidirectional.

At this point, value is perception which is in flux.


#3

Not statistically true. Check ur math.


#4

May I ask what statistic is untrue? I appreciate your feedback.

As a frame of reference, I am a behaviorist. My education and professional background provides my framework for observation. Its pretty fun when applied to this space.


#5

The main thesis of the thread starter is not true. Just put 100 Cryptos in a basket and check… ADA shouldn’t be compared with Cryptos that are being used, like ETH, BTC etc.


#6

:sweat_smile: That makes sense. Cheers


#7

Well it is true, look at the other projects in the coinmarketcap rankings and compare their ath to 2018 low. From Cardano’s ath of around 1.31 it lost 91.22% of its value falling to 0.115. Few other coins lost this much value. I was just curious to see why people thought this was. I know Cardano is a young project but I dont see this as being a factor when at this point crypto is largely speculative with few real use cases. Without doubt Cardano is a far superior project than many with a bright future, which I have invested a large chunk of money in. I just expected it to hold its value better. Either way I dont see it being a factor in the long term price of the project as it becomes more established.


#8

Non-sense.

and this is just top 50, if you included everybody it would be much worse. You are talking about hundreds of coins that did this… The most important is we are top 10 in market cap.

We had a huge pump out of the gates, the first rally and lots of hype, all of that works the same in reverse. Extra mispricing and hype to correct. When you make these comparisons, you have to weight them with the gains too, to make direct comparisons.

A coin that increases 200% and then falls 50% has fallen a lot more than a coin that goes up 1000% and falls 50% this would reveal it self when you weight it.

Remember it went from 0.0025 USD ICO to 0.025 USD when listed to 1.38 USD

55.000% gain without a correction, this is the first real one.

So you have a lot of supply (that sits on huge profits even at these prices) with that wants to take profit, and this has to be digested through the system

Bringing the price of the average holder and cost-basis up, this would normally have happened if ADA was always on exchanges, but it wasn’t. It made leap-jumps off-market and quickly rallied on-market.