Earlier today (March 29), popular New Zealand-based crypto analyst Lark Davis (@TheCryptoLark on Twitter) looked at the three most common complaints about the Cardano project to see which if any had merit.
Criticism #1: “Cardano Is Overvalued”
“The main use case for Cardano right now is staking… I think if we’re going to be honest here the current price of Cardano is riding pretty high on hype versus actual demand for the token based on utility and necessity by developers and users…
“The fundamental economics that will drive demand in the future are really not there right now. And look, there’s not actually anything wrong or abnormal about this. This is pretty common to see. We see it happen quite a lot with different assets, where an asset price will pump much higher than its value should be based off of where it currently is simply on the back of strong enthusiasm from supporters and of course future trajectory predictions.
“And just because Cardano is overvalued right now does not mean the price is going to go down dramatically or something like that. In fact, quite the opposite is likely to happen. The higher the market cap, the more serious of an investment it is in the eyes of many investors, making the market cap go even higher and becoming even more serious.“
Criticism #2: “Nothing Is Built on Cardano”
“First off, it’s not technically true… as there are actually a few things built on Cardano, right now, but realistically, there is no ecosystem to speak of right now for Cardano. So, this criticism is actually true, but it’s also an incredibly dishonest critique of Cardano in my opinion because it is hard to have an ecosystem when there’s no smart contract functionality...
“Smart contracts are coming. The testnet is due in late April. Smart contracts are then scheduled to come on the mainnet around August... I think we’ll have at least a few dozen applications by Q1 of next year.“
Criticism #3: “Cardano Is Too Slow in Its Development”
“Cardano is moving very very slowly for especially for a crypto project… Since Cardano launched, many other blockchains have also launched… I understand why… they’re using the pure reviewed academic approach. They want to get things right from the get-go. They want to build the best possible blockchain…
“Now, to be fair, Cardona does have a massive very very enthusiastic community; so that’s a big base of users ready and willing to come in and use applications on Cardano from day one that smart contracts launch… If Cardano can deliver such an ecosystem that makes people money, users will come, developers will come.
“I personally think that Cardano will prove the haters wrong this year, and that they will deliver a powerful and interesting blockchain that will become a big part of the cryptocurrency ecosystem…“