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Cardano creator Charles Hoskinson came in defense of the Cardano network in response to a tweet by Bitcoin maxi and former Twitter CEO Jack Dorsey. The Block CEO had published a substack post, which according to Hoskinson, classifies all proof of stake blockchains in a similar vein. Hoskinson argued that the remarks could not be further from the truth as it is not the reality.
The Ethereum PoS blockchain has a native slashing feature by which the stake of improper actors is cut to disincentivize malicious activity. While the feature keeps members of the network in line, Bitcoin maximalists consider it one of the many drawbacks of proof of stake consensus.
Cardano’s unique proof-of-stake model
However, as Hoskinson clarified, not all PoS network architectures integrate slashing, adding that going ahead, the likes of Cardano will get attacked for slashing and also have to bear the blame for Ethereum’s problems.
The Cardano blockchain offers a special reward-sharing model that incites all shareholders to act sensibly. By distributing the ADA supply among holders according to forces of the free market, the network becomes more decentralized and hence more secure against intrusion. The debate between Hoskinson and Dorsey comes on the back of Ethereum successfully transitioning to PoS consensus. The migration now enables developers to scale the network like never before, in addition to reducing its energy consumption.
Cardano’s stake pool delegation approach doesn’t involve the locking of assets. Instead, the ADA tokens within the Cardano network make up the stake. The size of the stake at any given time is proportional to the volume of tokens held. Holders earn rewards by running their stake pool or giving out the same to a pool run by another entity.
Cardano is ready for Vasil, Hoskinson says
Cardano remains the center of focus, particularly the progress towards the Vasil hard fork set for release on Thursday. The upgrade extends the capabilities of Cardano by moving away from diffusion pipelining to new Plutus enhancement. Hoskinson confirmed the scheduled release in a YouTube session that streamed on Sept 18.
“The automated process of installing the Vasil update has begun. It’s now in the air […] There is no going back. It has been initiated. It either explodes in air or reaches orbit and obviously, it’s going to reach orbit.”
While the smooth sailing thus far brings renewed hope in the community, its overall impact on the price remains dull. Nonetheless, some analysts have forecasted decent gains for ADA fueled by Vasil hype.
Crypto trader Michaël van de Poppe believes that the hard fork arrival presents an opportunity for Cardano (ADA) to attempt a breakout towards $1.00. He also tagged $0.32 and $0.40 as the key support zones to watch. Another trader Benjamin Owen projected a positive run for the price of the ADA token in the lead-up to and after the upgrade. The markets analyst observed that while the overall sentiment remains bearish, Cardano has a fair shot of capitalizing on an upside momentum and closing in on $0.60.
“If you were to see ADA pump to around $0.52 to $0.60 […] that would be a major milestone for ADA to get to, or to get past it. Especially as the bear market for Bitcoin sort of just drags on and the dollar continues to move higher.”
Cowen also earmarked the ADA/ETH valuation as one of the metrics he is tracking. In his opinion, the realistic scenario for getting in on ADA at present is if the coin ends up outperforming Bitcoin and Ethereum.
Cardano founder is expectedly among those expecting the upgrade release to work in favor of the token in the market. He, however, acknowledged that the timing doesn’t help, given the cryptocurrency industry is yet to recover from the Terra crash in May.
“This has been a very hard year for everybody. [I] didn’t work out the way any of us in the space intended. There was a $600 billion wealth destruction as a result of the collapse of LUNA. [$600 BN] that fled through the market and all kinds of craziness that we’ve all had to deal with, and it’s been very fatiguing and very hard to keep up with the frenetic pace of things.”
Cardano (ADA) price action
Cardano has continued seeking lower monthly lows since touching a three-week high of $0.52 on Sept 10.
The ADA/USD pair shed the majority of gains accrued since Aug 29 in a steep decline observed over the weekend. The 24-hr trading chart shows that the ADA token bounced at $0.43 and is currently hovering at $0.453.
Cardano to provide a blockchain-based traceability solution for Georgian National Wine Agency
Elsewhere, the Cardano Foundation announced last Thursday that it has entered into a partnership with the National Wine Agency of Georgia, Scantrust and the Bolnisi Winemakers Association. Global Communications Director Renagh Mooney wrote that the forged relationship will help improve “the quality and authenticity of Georgian wine” using a flexible and scalable blockchain-based solution.
A pilot program of this public track and trace solution will include up to 100,000 wine bottles from the Autumn 2022 harvest. Executives from the involved companies hailed the partnerships and the solution, particularly as a crucial part of realizing their objectives. Cardano Foundation CEO Frederik Gregaard highlighted the partnership as one of the cases where its secure and transparent solutions are being deployed to tackle real-world challenges.
To learn more, visit our Investing in Cardano guide.
Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.