What is preventing whales from forming cartels to get the majority and than collectively manipulate the block chain in their favor?
In the reward phase, since ADA isn’t mineable and all ADA already “exists” where do rewards come from? Are the rewards awarded from some special entity in the network like treasury or IOHK / Cardano Foundation account or is the reward just collection of fees from processed transactions?
Since ADA is not mineable this has likely created many whales that bought a lot of it while it was cheap.
In my opinion, even though they deserve some privileges for kickstarting the whole process, they are a big threat for the whole system.
Since award process is not really random, but dependent on your stake they have a growth advantage. If such whale decides to cash out he can crush the prices on the market.
We can argue that they won’t cash out because of reward incentive, but since ADA is “Etherium of Japan” or what ever, and Japan is hosting Olympics in 2020 people might find it convenient to buy ADA to use in Japan (especially if debit card is realized by then).
At that point value will rise and it’s only the matter of time till one of the whales decides to cash out before someone else does it, which will of course create losses for your average Joe who just wanted to shop and eat some sushi.
Am I thinking too hard about this or is such scenario realistic? If it is, how can we prevent it?
On a side note, there is too much domain name spam from Cardano. I could open a domain like cardanohq.org and host some malicious version of Daedalus wallet which steals ADA from people. All those sites for documentation, wallet, foundation should be on a subdomain.