Concerns Surrounding Cardano? Advisory Report Advises Investors to Liquidate Their ADA Holdings

  1. Critical Analysis by K33 Research Firm:
  • K33, a crypto research firm, issues a report advising Cardano (ADA) holders to sell their tokens.
  • The report highlights concerns about Cardano’s utility and questions the lack of proof of Cardano being used for any meaningful transactions.
  1. Lack of Evidence for Cardano’s Utility:
  • The report, authored by Anders Helseth, K33’s Head of Research, argues that there is no evidence of Cardano being used for any practical purposes.
  • Despite an average of 90,000 daily transactions on the network, the report dismisses them as non-meaningful and suggests they are primarily exchange transfers.
  1. Criticism of Cardano as a “Ghost Chain”:
  • The report echoes the criticism of Cardano as a “ghost chain,” with claims that the network lacks real activity, and activities are mainly conducted by a group of “bagholders” fabricating blockchain transactions.
  1. Stablecoin Situation as Proof of Inactivity:
  • The absence of widely recognized stablecoins like USDT and USDC on Cardano is cited as evidence of the network’s inactivity in meaningful DeFi (Decentralized Finance).
  • The report points out that Cardano-collateralized stablecoins on the network, valued at 76 cents to the dollar, are deemed worthless.
  1. Prediction of Cardano’s Decline:
  • The report concludes with a prediction that Cardano will never become a major player and will likely fade into irrelevance over time.
  • ADA holders are advised to sell their tokens as the analyst believes they would become worthless in the future.
  1. Market Evaluation and Future Outlook:
  • Despite Cardano’s current market value of over $18 billion, the report suggests that its value is primarily due to being a well-established and widely tradable coin.
  • K33 predicts that Cardano will gradually disappear from the crypto landscape, pointing to all price signals indicating such a decline.

Note: The summary reflects the content and opinions presented in the blog post, and does not endorse or confirm the accuracy of the information provided.

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