News - Cardano useless? Charles Hoskinson hits hard against new study

By Sam Fröling

Cardano useless? Charles Hoskinson hits hard against new study

Cardano (ADA)
Wallets and Whales
Cardano useless? Charles Hoskinson hits hard, against new study

Has Cardano ADA no intrinsic value or utility? At least that's what analysts at K33 Research think. Charles Hoskinson disagrees with the assessment.

Analysts at K33 Research recently published a report titled "Why you should all sell your ADA", stating that the "complete lack of meaningful activity on the Cardano network renders the ADA token worthless over time." Moreover, there is no evidence that "Cardano is being used for anything." "A smart contract network needs a meaningful use for its native token to have value. The Cardano network, however, has neither a meaningful use nor a credible way to achieve that," it continues.

The 90,000 daily transactions that Cardano enthusiasts always cite as proof of the high level of activity on the network would not be enough: "Anyone who has been active in the crypt industry for a while and still equates blockchain transactions with meaningful activity has been asleep in class." In fact, a group of ADA whales are responsible for the transactions, shifting their holdings back and forth to hide activity. Proof of the lack of DeFi activity is the stablecoin situation on the Cardano network. Stablecoins are the preferred unit of exchange in DeFi trading, especially on chains outside Ethereum. "No USDT or USDC on the network means no meaningful DeFi trading is taking place," he said. summed up the analysts.

No substantiation from Hoskinson

Criticism from Cardano founder Charles Hoskinson did not take long to materialize. He fired back via X: "Who? Never heard of them." However, he could not really reassure ADA fans with this rather modest rebuttal. Below his tweet, more and more comments are coming in asking for substantiated answers to K33 Research's criticism. When and if those will come remains to be seen. As this press release went to press, ADA's share price was unimpressed by events and was trading at USD 0.53, about 0.6 percent lower than 24 hours ago. Over the week, ADA is up 4.36 percent.

Also read: Cardano breaks records while ADA defies correction

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