Crypto Research Firm Says ‘Sell All Your Cardano (ADA)’, Here’s Why

K33 Research, a distinguished entity within the cryptocurrency analysis sector, has launched a scathing report on Cardano (ADA), sparking widespread dialogue within the crypto neighborhood. The report bluntly advises traders to divest from Cardano, citing a scarcity of significant use for its native token, ADA.

Promote All ADA Now?

In an in depth examination, K33 Research asserts that the Cardano community suffers from a big lack of sensible utility, which is crucial for the inherent worth of its native token. The report states, “A smart contract network needs meaningful use for its native token to have any value. The Cardano network, however, has no meaningful use or any credible track to get it.”

Addressing the counterargument typically introduced by Cardano supporters relating to the community’s every day transactions averaging round 90,000, the report argues that these don’t equate to significant blockchain exercise. The report additional elaborates, “There’s nothing else going on in the Cardano Network than exchange transfers and a group of bagholders fabricating blockchain activity.”

K33 Research highlights the absence of exterior proof supporting any important exercise on the Cardano community, contrasting it with different protocols the place actual exercise is corroborated by exterior proofs. This lack of exterior validation is termed as ‘proof by contradiction’ by the analysis agency.

Some of the telling indicators of inactivity, based on the report, is the state of affairs of stablecoins on the Cardano community. K33 Research factors out that the absence of main stablecoins like USDT and USDC on Cardano is a transparent indicator that no significant decentralized finance (DeFi) actions are happening. The one stablecoins current are reportedly Cardano-collateralized and valued at 76 cents to the greenback, which it refers to as “another word for nothing.”

Community stablecoin worth relative to market cap | Supply: K33

Future Outlook For Cardano

K33 Research is pessimistic about Cardano’s future, drawing parallels with different blockchain initiatives that began with no traction and later pale into irrelevance. The report notes that profitable blockchains evolve over time, whereas “creationistic, grand idea, subsidized bootstrapping, and no real use-blockchains” finally lose their luster. It cites examples like IOTA, NEO, and EOS as an instance this sample.

Regardless of Cardano’s present market valuation of $19 billion, K33 Research attributes this to its availability on varied exchanges and its attraction to new crypto traders. The report critiques the narrative surrounding Cardano, describing it as “scientific mumbo-jumbo” which may mislead newcomers.

“Ada is a well-established coin that is tradeable ‘everywhere’, also on smaller local exchanges, making it one of the coins that are ‘pushed’ to aspiring crypto investors. Cardano also has an enticing story for newcomers, with Cardano being branded as ‘the peer-reviewed research-driven blockchain network’,” the report mentions.

Nonetheless, K33 Research foresees a decline on this attract, predicting that the variety of new traders interested in Cardano will dwindle. Furthermore, K33 Research casts doubt on the long-term viability of ADA, citing a scarcity of rally in its worth in comparison with different robust sensible contract tokens throughout latest market rallies.

“Ada has not rallied in line with other ‘stronger’ smart contract tokens when markets have improved,” the report states, suggesting a gradual fade from relevance quite than an abrupt disappearance.

Drawdowns since September 2021
Drawdowns since September 2021 | Supply: K33 Research

In line with K33 Research, the market doesn’t quickly eradicate such cash however as an alternative “bleeds them out” over time. The report concludes, “Things never happen overnight, and these processes often take years to play out fully. Still, all price signals also point to Ada gradually disappearing from the crypto map.”

At press time, ADA traded at $0.531.

Cardano price
ADA worth held above the 200-week EMA, 1-week chart | Supply: ADAUSD on

Featured picture from Shutterstock, chart from

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