Cardano (ADA) is not seeing as much traction as it deserves, fueled by a set of challenges described by Crypto Capital Venture founder Dan Gambardello as “unique” and “massive”.
Cardano Bane and Venture Capital Influence
The top crypto analyst pointed out that the root causes of these challenges are multifaceted. He explained the two perceived causes of the Cardano challenge. First, Gambardello highlighted that Cardano is being “blockaded” by the industry due to false data and the negative narratives that have been paraded by top players and venture capital firms.
For context, he likened the situation to a big party where billions of dollars have been thrown around and Cardano is not invited. Even with these shortcomings, the analyst added that Cardano is still amongst the top ten cryptocurrencies.
Cardano faces a unique and quite massive challenge. The root cause is multifaceted, but I’m going to explain exactly what is happening here.
Cardano is very clearly blockaded by the industry due to false data and negative narratives perpetuated by big players and VCs.
The…
— Dan Gambardello (@cryptorecruitr) March 16, 2024
In the case of false data, it is believed that Cardano data are usually misreported by crypto analytic firms and often they leave it out completely. Gambardello believes that these firms engage in this act because they are only interested in promoting crypto projects that are well aligned with their investment goal, if not, they ignore such projects.
Many of these crypto analytics providers are usually backed by high-profile venture capitalists like FTX Ventures. To buttress his point, the analyst gave an instance where you have executives of trusted analytics firms scolding Cardano publicly.
An instance seen recently was recorded when a user recently compared ADA and Solana’s price movement in a bid to highlight the latter’s performance over the former. Cardano Founder Charles Hoskinson was quick to give a stern response but it’s worth noting that many crypto traders may have taken note of the comparison.
Cardano (ADA) Price Slump
The negative narratives about Cardano being perpetuated by top crypto players is achieved using the media.
According to Gambardello, these VCs have a significant level of influence over many of the media companies due to the support that they provide for their portfolio projects. In the long run, this makes it easier for them to sell the information they want with ease, whether true or not.
Ultimately, such moves end up denting the reputation of the crypto project. Currently, the native token of the network ADA is in the “red”, trading at $0.6971 with a 1.89% decrease in the last 24 hours. The crypto is showing resilience and trying to hit $1 but the widespread of false data, as highlighted by Gambardello might keep impacting negatively on its market value.