Are Cardano Investors in an Echo Chamber? Traders Scrutinize Hype Behind Red-Hot Crypto Asset

A Redditor is taking a closer look at the hype surrounding the Cardano smart contract platform, questioning whether its fanbase is too loyal to remain objective about the project.

Redditor LewiOcBT is asking users in the Cardano subreddit page if, amid their enthusiasm for their project, they also have any critiques to leverage at Charles Hoskinson’s budding platform.

LewiOcBT assures the Cardano Reddit community that they are a fan of the network, but wonders if they can also remain unbiased in their reviews of the seventh-largest crypto asset by market cap.

“So we all love Cardano here and crypto in general and that’s great. I enjoy this Reddit page but there is a danger we become an echo chamber. Are there any negatives to Cardano you can think of? Why would someone not invest? With every pro there is inevitably going to be some cons.”

According to a Reddit user drtheo94, the main shortcoming of Cardano is that it still lacks smart-contract functionality, something which its central competitor Ethereum, has had for nearly a decade.

“The most common criticism I see in other subreddits is the lack of smart contracts. Cardano has a roadmap laid out with a timeline for when to expect everything, including smart contracts, but not everyone reads this or expects things to stay on track.”

The company behind Cardano, Input Output Hong Kong (IOHK) announced earlier this month that smart contracts would launch on the blockchain this August.

Meanwhile, user SoHandsome_3823 argues that Cardano’s biggest drawback is its long-term approach to development.

“The only ‘cons’ that I see either involve the project failing or the fact that this isn’t a short-term project. This will take five, ten, fifteen years for it to reach the level that we have mass utilization. We don’t know how the world will look at that point…”

Cardano’s slow growth is also a factor that Reddit user KeyReturn7424 names as a possible disadvantage in the fight to draw in users.

“This is a very slow-moving project. A lot can and will happen in 5-10 years. Smart contracts are coming but will big institutions buy into it, or will they stick with Ethereum? No one knows but the sooner Cardano starts pushing out contracts the better.”

Redditor Geltmascher worries that Cardano’s projects in Africa, such as a blockchain-based identity solution in Ethiopia, could prove to be a reputation risk if they fail.

“We’re all very excited about the Africa developments, but if the project proves to be unsuccessful, it could hurt perception of the project as a whole.”

The supply of Cardano’s ADA token, currently at nearly 32 billion per CoinGecko, could be another turnoff for investors, according to International-Trip42.

“The high number of coins in circulation means the room for growth is now pretty low. That might put off some ‘investors’ because it won’t moon in price any time soon.”

At time of writing, ADA is up roughly 3% on the day, trading at $1.36 and hovering around a $43 billion market cap.

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Featured Image: Shutterstock/cobalt88


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