The price curve of Cardano (ADA) has been weakening for months. Founder Charles Hoskinson is now responding to criticism from the community and trying to calm the mood. But is this enough to give Cardano a boost?
The crypto year 2024 has been disappointing for Cardano (ADA) so far. A small upswing in the Cardano price curve in March has not been sustained. Forecasts that ADA could fall out of the top ten most important cryptocurrencies this year are sounding increasingly realistic. Cardano founder Charles Hoskinson wants to take countermeasures and has commented on typical points of criticism in a detailed video message:
– The ecosystem lacks a major stablecoin such as USDC or Tether (USDT). In fact, Cardano’s lack of success in the decentralized finance (DeFi) sector is also due to such details. Hoskinson shows understanding and promises that efforts will be intensified to bring a recognized stablecoin to Cardano. The attempt to establish Cardano’s own stablecoin with DJED has had little success.
– Scaling: Cardano users experience that transactions sometimes require half an hour of waiting time. Hoskinson confirms this, but believes that the situation is being unfairly dramatized. Ultimately, every transaction is processed at Cardano and transaction fees remain within reasonable limits, says Hoskinson. However, this does not help projects such as blockchain gaming or DeFi, which have to rely on processing transactions in near real time.
– Insufficient support for external projects from the Cardano Foundation. Hoskinson believes that this criticism misses the point. He compares Cardano to Bitcoin (BTC) and Ethereum (ETH), where developers are active on their own initiative and for their own account. Hoskinson even calls financial support for external parties “bribery”.
– Interoperability: Moderate critics such as “Block Is Hot” have identified that Cardano experiences little to no exchange with other ecosystems and that this is also related to the ADA programming language Haskell / Plutus. This solution is exclusive in the crypto industry and, according to some experts, also prevents Cardano from being listed on more crypto exchanges. Hoskinson points to dozens of trading venues for ADA and continues to see the special programming language as a feature and not a problem.
Conclusion: Cardano boss Hoskinson wants to raise hopes
Hoskinson is one of the alpha animals in the crypto scene and is known for sharply criticizing competing projects. In his latest appearance, however, Hoskinson is unusually tame and takes criticism from the community seriously. But now the 36-year-old should also deliver results; the topic of stablecoins for the ADA ecosystem, for example, has long been identified as an important and pressing challenge. If Cardano does not succeed quickly in attracting new users and getting home-grown problems under control, ADA investors will have to fear that crypto rallies will pass them by in 2024.
Leave a Reply