Cardano’s native token ADA has been the subject of a scathing report by the prominent research firm K33, which suggests that the cryptocurrency is on a downward trajectory due to a lack of meaningful activity and use cases. The report’s highlights include assertions that Cardano has no traction, is not being used meaningfully and will become worthless over time, dubbing it a victim of the “greater fool theory.”
Responding to these claims, Charles Hoskinson, the founder of Cardano, dismissed the think tank with a terse “Who? Never heard of them.” This reply, however, did not sit well with everyone, leading to criticism from those who believe that such a response does not adequately address the concerns raised by K33. Critics urge Hoskinson to counter the report’s points, highlighting K33’s substantial outreach and influence in the research space.
Some argue that ignoring a research firm’s analysis is not the solution, suggesting that a more comprehensive rebuttal could be more beneficial for ADA’s reputation.
ADA’s strong start
Despite the report’s grim outlook, Cardano’s performance tells a different story, especially in recent times. Throughout 2023, ADA did show poor performance, mirroring the broader crypto market’s downturn. However, the tide appears to be turning in 2024. In the last 10 days alone, Cardano has seen an 8% price increase, signaling a resurgence in investor confidence. Since December 2023, ADA has rallied by more than 40%, showcasing a robust recovery and contradicting the report’s dire predictions.
This positive price action could be reflecting a broader recognition of Cardano’s potential. The network has made significant strides in its development roadmap, with milestones aimed at enhancing scalability and introducing new functionalities. Moreover, Cardano’s commitment to peer-reviewed research and scientifically driven development often sets it apart in a space where many projects are quick to market but slow to deliver.