Crypto researchers at K33 Research have shared a strong opinion about Cardano (ADA), urging people to think about selling their ADA investments due to what they see as a lack of clear and important use.
Why Consider Selling ADA Now?
A well-known crypto research group called K33 Research says that Cardano is missing something important – a practical use that gives value to its native token, ADA.
They explain, “For a smart contract network, the token needs a good reason to have value. But Cardano lacks that reason or a clear plan to get it.”
Some people who like Cardano mention the network does around 90,000 transactions every day. But K33 Research argues that these transactions aren’t really doing much on the blockchain. They say, “There’s not much happening in the Cardano Network besides moving tokens around and a group of people holding tokens, pretending there’s more activity.”
K33 Research also says there’s no proof from outside sources showing significant things happening on Cardano, unlike other blockchains that can prove their real activity. They call this lack of proof ‘proof by contradiction.
Absence of Any Stablecoin on Cardano Blockchain
A big sign of not much happening, according to the report, is the situation with stablecoins on Cardano. K33 Research points out that major stablecoins like USDT and USDC aren’t on Cardano, hinting that not many important decentralized finance (DeFi) activities are going on.
The stablecoins on Cardano are said to be backed by Cardano and are valued at 76 cents to the dollar, which the report calls “another word for nothing.”
What’s Next for Cardano?
K33 Research isn’t feeling positive about Cardano’s future. They compare it to other blockchain projects that started without much attention and later lost their importance. They say successful blockchains change and improve, but those that start with big ideas but no real use eventually lose their appeal. Examples like IOTA, NEO, and EOS are given to explain this idea.
Even though Cardano’s current market value is $19 billion, K33 Research thinks this is mainly because it’s available on different crypto exchanges and attracts new investors. The report criticizes the story people tell about Cardano, calling it “scientific mumbo-jumbo” that might confuse people new to crypto.
K33 Research expects this appeal to decline, anticipating fewer new investors and questioning ADA’s long-term viability. Despite the slow process, the report concludes, “All signs point to Ada gradually becoming less important in the crypto world.”
