Crypto Analyst Declares $ADA ‘Dead to Institutions’, Gets Schooled by Cardano Community

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As an analyst with a background in blockchain technology and institutional investing, I find Ben Armstrong’s statement about Polkadot (DOT) and Cardano (ADA) being “dead” to institutions concerning. While it is true that institutional investors may have lost interest in these cryptocurrencies at the moment, their strong governance mechanisms, engaged communities, technological strengths, and potential for real user adoption make them viable and sustainable projects.

On July 3, 2024, Ben Armstrong, better known as BitBoy Crypto in the crypto community, took a bold stance on social media platform X (previously Twitter). He asserted that Polkadot (DOT) and Cardano (ADA) had lost their appeal for institutional investors. This view, according to him, could potentially harm the credibility of these cryptocurrencies. However, he emphasized that even though price hikes and gains were still expected from these coins during the ongoing bull market, the returns would likely be more subdued compared to other investment opportunities.

Armstrong’s Statement

According to Armstrong, the waning interest of institutional investors in Polkadot and Cardano could signal their potential demise as viable investment options.

As an analyst, I recognize that while the current market cycle may not yield exceptional profits for both Bitcoin and Ethereum, there is still potential for modest gains.

As a researcher, I’d like to clarify my previous statement regarding $DOT and $ADA. I expressed that these cryptocurrencies may appear dead to institutions, which could potentially impact their legitimacy as investments in the long run. However, it’s essential to distinguish between institutional adoption and market performance.

The Crypto Community’s Response

As a crypto investor, I’ve noticed that Armstrong’s comments sparked strong reactions from key figures within the Cardano community. They swiftly took to various social media platforms like Twitter and Reddit to vigorously defend their projects.

Here is a summary of their responses:

It was surprising to some members of the community that Armstrong labeled Polkadot and Cardano as defunct, given their well-structured governance systems, engineered for enduring success and adaptability.

One individual pointed out Cardano’s robust on-chain governance structure, which is bolstered by a sizable reserve and an energetic community – a factor that disputes the notion that such initiatives have lost their relevance.

A different user bluntly dismissed Armstrong’s statement as unfounded and nonsensical.

I, as an analyst, would emphasize that Cardano prioritizes user adoption over relying heavily on venture capital funding. I believe that investments frequently follow the network effect, implying that a robust community and advanced technology can attract genuine users in the first place. Eventually, these users may pique the interest of institutions, leading to their investment.

From my perspective as a researcher, an alternative viewpoint put forth is that the fundamental role of cryptocurrencies lies in empowering individuals rather than institutions. This stance challenges the belief that a project’s worth hinges solely on price increases.

One user questioned the validity of Armstrong’s statements, implying that his point of view could potentially be shaped by individual prejudices or misconceptions.

A fellow community participant challenged Armstrong’s perspective, highlighting Cardano’s robust history of reliability, autonomy, and an engaged user base as evidence of its potential as a durable blockchain platform.

As a crypto investor, I’ve come across various perspectives regarding Armstrong’s criticisms in the industry. Some people have speculated that his biased views could be rooted in personal disputes, casting doubt on the impartiality of his opinions.

Analysis

Armstrong’s remarks ignited a passionate response from the Cardano supporters, emphasizing the following crucial aspects:

    Governance Mechanisms: Cardano and Polkadot are praised for their strong governance frameworks, which are seen as essential for long-term sustainability and flexibility. Community members argue that these mechanisms ensure robust participation and adaptability, countering Armstrong’s claim that they are “dead.”Community Engagement: Cardano’s supporters emphasize the project’s strong and active community, which is crucial for the network’s success. They argue that engaged communities can drive adoption and innovation, making the project attractive to both individual users and institutional investors.Technological Strengths: Cardano’s proponents highlight its technological capabilities, such as its energy efficiency, self-sovereignty, and proven uptime. These attributes, they argue, are significant draws for both users and institutions, contrary to Armstrong’s assertions.Institutional Interest: While Armstrong claimed that DOT and ADA are “dead to institutions,” community members pointed out that institutional interest is not the sole determinant of a project’s success. They argue that a strong network effect and real user adoption are equally, if not more, important.
It’s quite intriguing to note that the coins with built-in governance mechanisms, which foster long-term participation, flexibility, and sustainability, are sometimes referred to as “dead” coins. However, this is a misnomer. The coins like ADA and DOT have not been declared successful just because of our expectations; rather, their designs enable them to endure beyond the test of time.— ADA whale (@cardano_whale) July 4, 2024

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2024-07-05 22:42