The latest K33 Research note asserts that the Cardano network has no meaningful use and this does not augur well for its native token. The note concludes that nothing is happening on the network except “exchange transfers and a group of bagholders fabricating blockchain activity.”
‘Bagholders Fabricating Blockchain Activity’
According to K33 Research, the Cardano network has no meaningful use or any credible track record, which does not bode well for its native token ADA. In one of its recent research notes, K33 Research asserts that nothing is happening on the network besides “exchange transfers and a group of bagholders fabricating blockchain activity.”
Who? Never heard of them
— Charles Hoskinson (@IOHK_Charles) January 15, 2024
To back these claims, the research firm highlights Cardano’s stablecoin situation or the lack thereof. For K33 Research, a smart contract network that has neither USDT nor USDC in it means it is devoid of purposeful activity.
“Stablecoins are the preferred unit of exchange for defi [decentralized finance] altcoin trading, especially on chains other than Ethereum. No USDT or USDC in a network generally means that no meaningful defi occurs AND that Tether and Circle attest to this because if something went on, they would issue stablecoins there,” K33 Research wrote in its note.
ADA Will Drift Into Irrelevance Over Time
Although there are stablecoins on the network — about 20 million Cardano-collateralized — K33 Research said the fact that it trades at 76 cents to the dollar proves that nothing is happening on the network.
When asked about his thoughts on K33 Research’s claims, Cardano founder Charles Hoskinson responded by asking: “Who? Never heard of them.”
Meanwhile, in addition to questioning the network’s lack of stablecoin activity, the K33 Research note concludes that without any traction, not even Cardano’s years of history will save it from “drifting into irrelevance over time.” The note cites IOTA, NEO, EOS, and Concordium as some of the networks that met this fate.
Regarding Cardano’s native token ADA, which is valued at around $19 billion, the research note said the network’s “scientific mumbo-jumbo story” is the likely reason why people have been lured into buying the crypto asset. However, with time, not even Cardano’s claim of being “a peer-reviewed research-driven blockchain network” will stop ADA’s gradual disappearance from the crypto map, the research said.
Do you agree with K33 Research’s assertions about Cardano and its native token? Let us know what you think in the comments section below.
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