The well-known blockchain project Cardano (ADA) is currently ranked 5th on CoinMarketCap and has a market cap of nearly $ 39 billion. However, many people in the cryptocurrency market don’t find the hype surrounding the project justified. Now, however, well-known cryptocurrency analyst Lark Davis has discussed the three most common criticisms of the project.

Criticism No. 1: “Cardano is overvalued”
He started his video by discussing whether Cardano’s value is a fair value for the coin right now. He said the following about this:

“The main use case for Cardano at the moment is staking… I think if we are going to be honest here, the current price of Cardano is quite high due to the hype versus the actual demand for the token based on utility and necessity by developers and users. ”

He went on to:

“The fundamental economy that will stimulate demand in the future is really not there now. And look, there is nothing really wrong or abnormal about this. This is quite normal to see. We see it happening very often with different assets, where an asset price will pump much higher than its value should be based on where it is currently located, simply on the back of strong fan enthusiasm and of course future price predictions. ”

He concluded by stating that this is not to say that he thinks the currency will fall in value:

“And just because Cardano is now overvalued doesn’t mean the price will drop dramatically or anything. In fact, the opposite is likely to happen. The higher the market capitalization, the more serious an investment is in the eyes of many investors, making the market capitalization even higher and more serious. ”

Criticism 2: “Nothing has been built on Cardano yet”
Critical number two he addressed is that it is often said that nothing has been built on the Cardano blockchain yet. He elaborated on this by stating the following:

“First, it’s not technically true… since there are actually a few things built on Cardano at the moment, but realistically there isn’t an ecosystem to speak of for Cardano at the moment. So this criticism is actually true, but it’s also an incredibly unfair criticism of Cardano in my opinion, because it’s difficult to have an ecosystem without smart contract functionality. ”

He went on to:

“Smart contracts are coming. The testnet will be released at the end of April. Smart contracts are then scheduled to appear on the mainnet around August… I think we’ll have at least a few dozen registrations in the first quarter of next year. ”

Criticism No. 3: “Cardano is developing too slowly”
The last point he discusses is that the project is developing too slowly. He said the following about this:

“Cardano is moving very slowly, especially for a crypto project… Since the launch of Cardano, many other blockchains have also launched… I understand why… they use the purely revised academic approach. They want to do everything right from the start. They want to build the best blockchain possible. ”

He went on to:

“Now, to be fair, Cardona has a huge, very enthusiastic community; so that’s a large group of users who are ready and willing to run applications on Cardano from day one smart contracts are launched… If Cardano can deliver such an ecosystem that makes people money, users will come, developers will come. ”

He concluded with:

“Personally, I think this year Cardano will prove the haters wrong and deliver a powerful and interesting blockchain that will play a huge role in the cryptocurrency ecosystem.”

Categories: BitcoinCardano