- In an interview on Friday, Charles Hoskinson, Cardano’s founder and CEO of IOHK, spoke on the importance of price in the longevity of blockchain projects highlighting ADA’s 50% move on Shelley’s launch announcement.
- Can ADA cement its place on the tenth position winning the battle of proof-of-stake (PoS) tokens?
Hoskinson: “Market will basically decide what the standards are”
Price is not always a revered matter in some sections of the blockchain development community, who believe that the benefits of the platform outweigh the speculation in price. However, Charles differed with this opinion stating that the markets have the power to decide the appreciation of a company as they are also customers of the product.
Over the years, the cryptocurrency market has shed off and accepted several currencies in the top ranking lists, Bitcoin (BTC) being the only constant since launch. Some of the projects such as Peercoin, the first blockchain to employ staking mechanism, and Primecoin, an improvement on BTC’s scalability and transaction fees, have faded into oblivion.
Despite the earlier projects offering a tangible solution, the market failure stifled development setting newer projects such as Cardano (ADA) and Tezos (XTZ) to take over the staking market and Bitcoin forks, Bitcoin SV (BSV), and Bitcoin Cash (BCH) to swallow the alternative Bitcoin market. Charles Hoskinson said,
“Ultimately people do what they make money with, the market will basically decide what the standards are.”
Market is king
In an interview with CoinDesk, speaking about Cardano, Hoskinson believes a high price is beneficial to motivate its community on the utility and inherent value of developing the platform. This strengthens the price even further. However, over the years the crypto market has shown its randomness in picking winners and losers and Hoskinson is wary of the fact.
The crypto market field does not reflect the project's development progress but rather a speculation ring of trades. The growth of Dogecoin, a meme token, to a current market capitalization of $320 million is a clear indication of the “market is king.”
Charles further explained that he didn’t expect Ripple-backed XRP and Tether (USDT) to reach their current multi-billion market capitalization at their launch. He said,
“The things you think may gain traction and become a big deal, they could be yesterday’s news, and other things that you don’t think are going to be a big deal, end up becoming huge.”
Cardano starts the launch of the Shelley upgrade
Less than a month since Charles announced the launch of the Shelley upgrade on Cardano would be deployed in 2020, the process has started with the final upgrade expected to be complete and running on June 30th. In light of the launch, the price of Cardano rose to an 11 month high – a prospect that Charles believes will propel the blockchain to compete with the very best projects in the field. He said,
“There’s a very strong possibility that we will be very competitive price-wise with the rest of the crypto market.”
Over the past 24 hours, Cardano, ticker ADA, and Tezos, ticker XTZ, have exchanged the 10th position on Coinmarketcap multiple times. Cardano currently claims it with a total market cap of $2.21 billion, currently trading at $0.085288 on major exchanges at the time of writing.