Crypto researchers at K33 Research shared a negative opinion about Cardano. Researchers suggest that there is a clear and significant lack of usage in the altcoin project. That’s why they’re urging people to consider selling their ADA investments.
K33 Research: Cardano is missing something important!
A well-known crypto research group called K33 Research says Cardano is missing something important. This is a practical use case that gives value to the native token ADA. In this context, researchers make the following statement:
For a smart contract network, the token needs a good reason to be valuable. But there is no reason for this or a clear plan to achieve this in Cardano.
What’s missing from the altcoin project?
Some people who like Cardano state that the network processes around 90,000 transactions every day. However, K33 Research argues that these transactions do not mean much on the Blockchain. Along these lines, they say, “Not much happens on the Cardano Network other than moving tokens around and a bunch of people holding the tokens acting like there is more activity.” K33 Research also says that there is no evidence from outside sources to suggest that anything significant is happening on Cardano, unlike other blockchains that can prove its actual activities. They call this lack of evidence for the altcoin ‘proof of contradiction’.
There are no stablecoins on Cardano Blockchan
According to the report, the biggest sign that not much is going on is the state of stablecoins on Cardano. K33 Research points out that major stablecoins such as USDT and USDC are not available on Cardano. So they imply that there isn’t a lot of significant decentralized finance (DeFi) activity going on. Cardano stablecoins are said to be backed by Cardano and are worth 76 cents on the dollar, which the report calls “another word for nothing.”
What’s next for the altcoin?
K33 Research does not have a positive opinion about the future of Cardano. They compare Cardano to other Blockchain projects that started without much attention and then faded away. They say successful blockchains change and evolve. However, they note that those that start with big ideas but have no real use eventually lose their appeal. They give IOTA, NEO and EOS as examples to explain this idea.
The current market value of the altcoin project is $19 billion. However, K33 Research attributes this mainly to its availability on different crypto exchanges. They state that this also attracts new investors. The report criticizes the narrative about Cardano. He calls this “scientific nonsense” that will confuse crypto newbies. Therefore, K33 Research expects fewer new investors. So he expects that appeal to wane, questioning the long-term viability of the ADA. Despite the slow pace, the report concludes:
All signs point to ADA becoming less and less important in the crypto world.
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