Bagholders Fabricating Blockchain Activity

January 20, 2024 | by


The latest research note from K33 Research raises concerns about the Cardano network, suggesting that it lacks meaningful use and puts the value of its native token at risk. The note suggests that nothing of significance is happening on the network, with only exchange transfers and a group of bagholders fabricating blockchain activity. K33 Research also highlights the absence of stablecoins on the network, which it argues indicates a lack of purposeful activity. The research note concludes that without traction, Cardano may drift into irrelevance over time, joining other networks that have met a similar fate. Furthermore, the note questions the allure of Cardano’s native token, ADA, and believes that even Cardano’s claim of being a peer-reviewed research-driven blockchain network will not prevent its gradual disappearance from the crypto map.

Bagholders Fabricating Blockchain Activity

The latest K33 Research note claims that the Cardano network lacks meaningful use and raises concerns about the value of its native token, ADA. The research note states that there is very little happening on the Cardano network besides exchange transfers and a group of bagholders fabricating blockchain activity.

According to K33 Research, the Cardano network does not have a credible track record and is devoid of any meaningful use cases. This lack of activity does not bode well for the value of ADA, which relies on a thriving network for its success. The research firm raises doubts about the legitimacy of the blockchain activity happening on the network, suggesting that it is being artificially inflated by a small group of participants.

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This assertion from K33 Research is a significant blow to Cardano, as it calls into question the network’s claims of being a revolutionary blockchain platform. Without meaningful use cases and genuine activity, Cardano may struggle to gain widespread adoption and maintain its value in the highly competitive cryptocurrency market.

Bagholders Fabricating Blockchain Activity

Cardano Network Lacks Meaningful Use

K33 Research highlights the Cardano network’s lack of meaningful use as a crucial factor in its skepticism towards the project. The research note points out that beyond exchange transfers, there is little evidence of any purposeful activity on the network.

Stablecoins play a vital role in the decentralized finance (DeFi) ecosystem, enabling seamless trading and transactions. However, K33 Research notes that Cardano does not have major stablecoins like USDT or USDC on its network, indicating a lack of meaningful DeFi activity. The absence of these stablecoins suggests that Cardano is not attracting significant interest from DeFi participants.

Stablecoins issued by Tether (USDT) and Circle (USDC) serve as reliable indicators of DeFi activity on a particular blockchain platform. Their absence on the Cardano network suggests that there is limited DeFi activity occurring, reinforcing K33 Research’s claim that the network lacks meaningful use.

Cardano Native Token Value at Risk

The research note from K33 Research also raises concerns about the value of Cardano’s native token, ADA. Currently valued at around $19 billion, ADA’s value may be at risk due to the lack of meaningful use on the Cardano network.

K33 Research attributes the popularity of ADA to Cardano’s marketing as a “peer-reviewed research-driven blockchain network.” However, the research firm believes that over time, even Cardano’s claims of scientific credibility may not be enough to prevent ADA from gradually disappearing from the cryptocurrency market.

Without genuine use cases and a thriving network, the value of ADA may diminish as investors lose confidence in the project. K33 Research’s assertions suggest that ADA’s value may not be sustainable in the long term unless the Cardano network can demonstrate meaningful use and attract significant activity.

Cardano’s Lack of Traction

To further support its claims, K33 Research points to other blockchain networks that have met a similar fate due to a lack of traction. The research note cites IOTA, NEO, EOS, and Concordium as examples of networks that drifted into irrelevance over time due to their inability to attract meaningful activity and maintain user interest.

This comparison highlights the potential risks faced by Cardano if it cannot overcome its current lack of traction. Building a strong user base and attracting developers to build decentralized applications on the network is essential for Cardano’s long-term success. Without meaningful use and widespread adoption, Cardano may struggle to maintain relevance in the highly competitive blockchain industry.

Readers’ Opinions on K33 Research’s Assertions

It is important to consider differing opinions and perspectives on K33 Research’s assertions about Cardano and its native token. While the research note raises valid concerns about the lack of meaningful use, it is essential to gather feedback from the Cardano community and industry experts to understand the full picture.

Readers are encouraged to share their opinions on K33 Research’s claims in the comments section below. This will foster a constructive dialogue and allow for a comprehensive analysis of the Cardano network’s current state and its prospects for the future.



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