I hope the question mark at the end of the post's title is enough indication that its content should in no way be mistaken for financial advice ;-) Instead, it's a free flowing sequence of thoughts on this slow moving project from someone who's been holding on to their ADA tokens since January 2021 when they cost 25 cents.
source: GitHub
Now don't get the wrong idea; I'm not an ADA millionaire. After January I kept cost-averaging into the coin, as I do with any other coin I own. I bought 50 dollars worth in January, then 50 dollars again in February, by which time the price had gone up to 65 cents already, and I kept doing this, sometimes a little bit more, sometimes a little less, until December. At that point I reached my goal of owning 1000 ADA, helped along by the rewards for staking the token as well. And the highest price I've paid for the coin along that ride is $2.40 while the current price is around $1.40, so it's not all gains either... But that's what I do when I believe in a project; the current price is of no real consideration, its future potential is.
So why Cardano? This has very much to do with its creator and the philosophy behind its development. Charles Hoskinson is one of the co-founders of the Ethereum blockchain platform. He joined Vitalik Buterin in late 2013 as one of eight original founders, and briefly held the position of CEO at Ethereum. Buterin and Hoskinson fell out of love in 2014 after a dispute over whether the project should be commercial (Hoskinson's view) or a nonprofit (Buterin's view). The formation of IOHK (Input Output Hong Kong) in 2014 was an early indication of Hoskinson's philosophy, as that was an engineering and research company with the aim of building blockchains; Hoskinson firmly believes in the scientific approach when it comes to developing blockchains, as opposed to the majority method in this market of promising too much before the product is even half finished.
Hoskinson also firmly steered away from venture capital investments, as this might lead to an outsized control of investors over the project, which would contradict his first principle of a scientific approach. This approach is the main reason why Cardano's development has been so slow, and the main reason why I and many others have so much faith in the project. Every proposal and every upgrade, as well as the blockchain's entire foundation, everything is peer-reviewed by experts in the field before it's put into code. Many other similar projects have overtaken Cardano since its inception, like Solana, Terra and Polkadot, but the fact that ADA still stands above them all on the Coinmarketcap ranking says a lot about Cardano's extremely loyal fan-base. Well, okay, maybe the fact that more than 70 percent of the tokens are staked has something to do with it as well... ;-)
I believe firmly in Cardano's potential though and 2022 could be the year that ADA will finally and truly takes off. Those who've followed the project know that 2021 was the year that Cardano's smart contract capabilities were unleashed. And a whole lot of projects have already been announced; just follow the link from the cover image to get a quick overview. SundaeSwap, one of the most eagerly awaited projects has been announced to go live on 20 January. It's Cardano's first Decentralized Exchange (DEX). Hoskins celebrated this announcement with the following Tweet: "Congratulations to the Sundae Team and ecosystem. It was a long and hard road for them. Also, many more Cardano DApps coming online this quarter to look forward to!"
So, what can we expect from this launch on 20 January? Well, it's not good. Let me explain. The SundaeSwap Labs Team published an article on Medium.com on 7 January titled Expectations, Congestion, & Mainnet Launch.. You can follow the link for the complete article, but I'm going to do the TLDR here; in short, the team expects that the blockchain will not be able to process the spike in network demand, and tries to warn the community in the article. Here's an excerpt:
To be as transparent as we can, we want to inform you all that while orders (including swapping, providing liquidity and withdrawing liquidity) may take days to process, everybody’s orders will be processed fairly and in the order they were received and executable. It will also be possible to cancel orders at any time before they are processed...
"May take days to process"... Like I said: not good. However, this will only be temporary, as upgrades and new projects will follow in rapid succession during the first half of this year, and may continue in the second half as well. Initially though, during the first few days after launch according to the SundaeSwap Labs Team, the network will build up a considerable backlog of queued transactions, which will most likely result in a wave of negative news and FUD. I'm holding my ADA though, as I have confidence in the creator and team behind this slow burning and carefully crafted mega-project; there are a series of improvements and enhancements planned to scale the Cardano network capacity throughout 2022, alongside many other optimizations. Again, this is not financial advice, but I know what I'll do if the expected FUD materializes and results in a price-drop for ADA ;-)
WARNING TO ALL CARDANO HOLDERS!!! (Watch Before Jan 20)
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