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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The firm further projects a bleak future for Cardano. K33 analysts believe that Cardano will fall into irrelevance despite initial hype, similar to other blockchain projects like IOTA, NEO, and EOS. Analysts attribute this to a lack of evolutionary growth in these blockchains and their tokens.
Instead, K33 Research argues, successful blockchains emerge organically, growing out of real use rather than being propelled by grandiose ideas and subsidized bootstrapping.
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In response to criticism claiming Cardano is useless, Charles Hoskinson questioned who K33 Research was. These dismissive remarks suggest a disregard for the analysis presented.
“Who? Never heard of them,” Hoskinson said.
This stance, eschewing a direct rebuttal to the specific points raised, raises questions about the network’s future trajectory and its ability to address valid concerns.
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