‘We Need More Buyers’: Cardano Community Solves ADA Price Problem

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As a seasoned crypto investor with a decade of experience under my belt, I find myself deeply concerned about the recent debate surrounding 3UTxO’s request for 200 million ADA tokens from the Cardano Treasury. While the community’s anger is understandable, as a pragmatist, I believe it’s crucial to look beyond the immediate emotions and consider the long-term implications of this decision.

A lively argument has arisen among Cardano (ADA) enthusiasts’ circle over a proposed request for 200 million tokens by an entity within their ecosystem, addressed to the Treasury, causing debate and dissatisfaction.

3UTxO’s venture capital fund documents were reportedly leaked, revealing that they sought a substantial sum of money to invest in Cardano-focused start-ups and innovative projects. This proposal sparked disapproval among many community members, who felt the demand was excessively high.

Although many members within the Cardano community expressed frustration over the distribution of approximately $120 million worth of ADA tokens (at current exchange rates), key figures within the community pointed out the reasons behind this request, which had initially been proposed.

“How do we fix this?”

Rick McScracken, by including the ADA power structure diagram in his post, sparked a discussion about potential actions and solutions, considering that the governance will transition to the community as of September 1.

For those unaware, on September 1st, Cardano is anticipating a hard fork named Chang. This significant update will lead Cardano into a new phase of decentralized governance. Notably, during this transition, the control will shift towards the treasury community, which currently holds approximately 1.5 billion ADA, equivalent to around $900 million at present.

Ok Cardano peeps, as of Sep 1 this protocol is in our hands. How do we fix this? 👇

— Rick McCracken DIGI 🇺🇸 (@RichardMcCrackn) August 25, 2024

According to a chart posted by MсСraken, it appears that there are several areas needing attention. Specifically, ADA‘s market share has dropped to 0.63%. This figure represents ADA’s proportion of the overall crypto market capitalization, suggesting that it is currently vying for a spot in the top 10 cryptocurrencies. At present, Solana (SOL) holds a dominance of 3.4%, while Ethereum (ETH) stands at a significant 15.02%.

One approach suggested by the passionate advocate is that regaining market leadership for the token could be achieved either by existing owners purchasing additional tokens, or by enticing new investors to join the community.

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2024-08-26 13:40