On Africa Deals

To those complaining in the threads about how the price of ADA has not budged despite the Africa deal – a few thoughts:

1. r/cardano is not a trading sub. For speculation and price discussion, go to r/cardanotrading. I am not judging at all. I care about price too – this just isn’t the sub for that.

2. ADA is not a stock. Deals made by IOHK do not affect ADA in an intuitive way because ADA is not representative of an ownership stake in said company. Although I feel that stock pricing is as arbitrary as crypto pricing at times, there is still a solid argument that price of a stock at some level is fundamentally supported by the earnings of the company (and multiplied by the PE ratio). This is not and cannot be the case with a decentralized cryptocurrency, where the entire point of it is that it is not backed by any single organization or country.

3. If price were to be dependent on utility of a blockchain, announcement of a partnership just isn’t that significant in crypto. It is not like equities where a government contract means pretty much guaranteed growth and tons of money. Again, Cardano =/= IOHK to a degree. Many crypto projects shot for the moon and failed or stole people’s money. The best thing to come out of this project is a real solution that helps people and one for which cryptocurrency was truly the best solution.

So there is my rant. Again, I am not pretending I don’t care about price. I just think it’s silly to talk about it especially in the context of this deal when the market is not remotely comparable to traditional markets.

Source: reddit.com