- Cardano’s ADA is overvalued says prominent analyst
- Cardano Development Delays deployment of Shelly Testnet
A prominent cryptocurrency analyst recently claimed that Cardano, the smart contracts platform that will compete with Ethereum promising a high quantity and scalability is overvalued. Cardano’s native token ADA currently has a market cap of $934 million from a circulating supply of 25.927 billion.
The proof-of-stake platform is created on scientific peer-review and detailed quality control checks of its code with Charles Hoskinson doubling as one of the six pioneer co-founders of Ethereum and technical leader. This argument is one out of numerous, as at the ICO boom of late 2017, most blockchain projects struggle to appeal usage even after raising millions. Investors have so far continued to invest their capital to these projects despite a minimum viable product and shifting roadmaps. Putting this into consideration, the analyst has called for caution and due diligence. Sharing his concerns on his Twitter page, @SatoshiFlipper stated that “Some of these altcoin valuations are still beyond laughable. ADA is a $1 billion market cap? Based on what? Shameful. When are you guys going to start investing in companies with working products that generate cash flow and demonstrate real adoption?”
For some good reasons, there are perchance thousands of projects finding themselves struggling financially and regardless of their majestic promises, are yet to come through regarding launching services and products. The situation was further intensified by the grueling cryptocurrency winter of 2018 when prices of tokens and coins plummeted, with some losing as much as 99% of their previous market prices.
Cardano Development Delays deployment of Shelly Testnet
Commenting on this @PeterLBrandt stated that, “Many altcoins benefited from the last bull run in $BTC Cryptomaniancs expect alts to do so again – they may be very disappointed. 2000 .com bubble is analog. Following the 2001-02 tech collapse, dotcoms with real value exploded. The “alt” .coms went bankrupt.”
Crypto projects are still struggling while some have packed off following a price depression biting deep into the crypto market months after 2017 peaks. For now, regulators are on these project’s necks, advising them to either return funds to investors or pay heavy fines for selling unregistered securities as they termed it. Most tokens distributed through smart contracting platforms like Ethereum or waves are considered securities by the U.S Securities and Exchange Commission (SEC).
Cardano (ADA) Price Today – ADA / USD
Though supporters of Cardano are strongly against this view, even though there have been a couple of times when the project disappointed investors. The switch from Byron to Shelley phases was marked to delays. Previously in October 2018, IOHK, the development department of Cardano pushed back the deployment of Shelly Testnet. Recently, Cardano completed the ADA snapshots of coin balances held at their official wallets, Yoroi, and Daedalus in preparation for an incentivized Testnet. Balances will run a staking pool from where coin owners can earn rewards.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.