A new report from crypto researchers at K33 is cautioning Cardano holders to sell their ADA tokens. The report points to ongoing concerns, including a persistent negative narrative surrounding the Cardano network.
K33’s Head of Research, Anders Helseth, suggests in a recent report that ADA holders should sell their tokens due to a lack of evidence showing Cardano being used for any specific purpose. The report argues that this could impact ADA’s usefulness in the future.
Cardano’s Utility Concerns: A Critical Analysis by K33
Anders Helseth, Head of Research at K33, suggests that Cardano supporters may counter his argument about ADA’s utility by pointing to the network’s average of around 90,000 daily transactions. However, Helseth dismisses this, stating that these transactions don’t necessarily translate to “meaningful transactions.”
The report claims that Cardano’s network primarily sees exchange transfers and accuses a “group of bagholders” of fabricating blockchain activity, aligning with the criticism of Cardano as a “ghost chain.” Analysts, including Lady of Crypto, predict poor performance for ADA in the next bull run, citing the lack of network usage.
Helseth emphasizes that real activity in protocols typically has external proof, but Cardano lacks this “outside proof,” creating a ‘proof by contradiction’ scenario. This analysis raises concerns about Cardano’s actual functionality and user engagement.
ADA price at $0.53 | Source: ADAUSD On Tradingview.com
Cardano’s DeFi Challenges: A Bleak Outlook by K33
The K33 report highlights the absence of fiat-backed stablecoins, such as USDT and USDC, on Cardano as a significant sign of inactivity. According to Helseth, this absence indicates a lack of “meaningful DeFi” on the network. He points out that Tether and Circle, issuers of USDT and USDC, have not integrated their stablecoins into Cardano, reinforcing the claim of limited DeFi activities.
Helseth argues that the only stablecoins present on the network are Cardano-collateralized ones valued at 76 cents to the dollar, rendering them worthless in his opinion. The report concludes with a stark assertion that Cardano is unlikely to achieve prominence and may gradually fade into irrelevance over time.
The analyst advises ADA holders to sell their tokens, anticipating their diminishing value. Despite ADA’s market capitalization exceeding $18 billion, K33 contends that its value is primarily due to being a well-established and widely tradable coin. However, the report suggests that ADA’s significance in the crypto space will diminish, leading to its gradual disappearance from the market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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