In a bold retort to a critical report by K33 Research, Charles Hoskinson, the founder of Cardano, downplayed the research firm’s credibility. The firm tried to allege that Cardano’s native token – ADA, is useless.
This response comes amid a contentious debate sparked by K33’s analysis. The analysis deemed Cardano’s native token as lacking meaningful use and value.
Is Cardano (ADA) Useless?
K33 Research’s report asserts that a smart contract network’s native token requires substantial use to hold any value. However, the firm claims ADA lacks such utility or a credible path toward achieving it. Analysts at K33 Research highlight the absence of proof of ADA’s utilization beyond exchange transfers. They also alleged artificial activity by holders.
A pointed critique involves the stablecoin market on Cardano. In contrast to other networks where stablecoins like USDT or USDC dominate DeFi altcoin investing, Cardano appears to have a limited presence in this regard. It features only 20 million Cardano-collateralized stablecoins valued below one dollar.
Analysts argue this signifies a lack of meaningful decentralized finance (DeFi) activity on the network.
“There’s nothing else going on in the Cardano Network than exchange transfers and a group of bagholders fabricating blockchain activity… There is no outside proof of anything going on. It is only the blockchain data and trading on exchanges… There’s not a single USDT or USDC in the Cardano network,” analysts at K33 Research wrote.
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Author: Harsh Notariya
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