Is Cardano A Scam Even Bigger Than Tether?

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  1. Hiring marketing
  2. Suspiciously staking-focused
  3. Shiller account
  4. At this point, is Cardano a meme coin like Doge?
  5. Only, what’s with this problematic testnet launch?

Cardano has always been curious crypto for me.

A newbie to the crypto world would go to Google and type, “The top cryptocurrency” and he will see Cardano on the list. He’s likely to buy it as an initial investment.

And then after you are long enough in the crypto, you’ll wonder why dApp ranking site doesn’t list Cardano, despite its 90 billion market capitalization and supposedly status as one of the biggest L1 blockchains that support DeFi. (Considering you don’t know the answer.)

No Cradano in sight. Source: dApps.com

Lesson learned: Market capitalization alone won’t determine if a project is legit or nah.

A history of not delivering

Cardano has a consistent history of overpromising yet underdelivering.

Peeking into their website — which to me looks like it’s mostly fluff marketing words — Cardano plans to be secure, scalable, and a blockchain that’s gonna “change the world.” The problem with too generalized claims like this, it makes anyone critical enough to ask, “Ye, but how exactly?”

Their website is a textbook 2017 ICO style marketing.

Their roadmaps page includes promises that there will be smart contracts. They also promise a highly scalable chain. Meaning, it will be better than Ethereum because it can process more transactions per second and handle many dApps without the network being congested.

It’s all looks fine and dandy, but here’s a fact: Cardano is still a work in progress. The project is funded in 2016. It’s been almost 6 years since. (Their excuse is that “research” takes time.)

As shown on the screenshot above, there is no Cardano category on dApps ranking. It’s an unborn chain with no clear due date.

Other Layer 1 solutions like Solana or Avax, which are younger than Cardano, are already way ahead.

Solana, problematic as they are, have a straightforward design that’s clear what is it they promising

Cardano promised smart contracts — the key feature that makes Cardano be able to support dApps and NFTs — since 2018. In 2019, Charles promises that it would be available “within the end of the year.” It got delayed, and now it’s 2021, and still no smart contract.

This behavior is scammy. A scam typically delays. They create hope and hype for as long as possible so they can rake money from the clueless. A Vaporware, Cardano hides behind “research” and peer-review, which is a poor strategy in an industry that moves fast and breaks things.

There’s a remark that I find interesting. It’s more bullish for Cardano to never release any actual product. It’s the anticipation that keeps the price higher, reaching an all-time high of $3 dollar per coin just a few days ago.

Questionable founder

Even before I know what’s the deal with Cardano is, I already found it strange that no big crypto influentials are “shilling” Cardano the way they do bitcoin or Ethereum. Even doge still gets some love, but for some reason, not Cardano.

The answer lies in its uncharismatic founder. “Uncharismatic” is a nice word. There are instances where people call Charles “Toxic.”

Crypto insiders know what kind of man Charles Hoskinson is. In the book Out of The Ether, a passage described Charles as, well, a sociopath.

A screenshot of the page. Source: Twitter

That explains why no respectable crypto influential person rally behind him. Heck, even presumable crypto mafia FTX and Tether don’t want anything to do with him either (other than listing ADA.)

Cult-like internet following

However, the negative sentiment toward Charles doesn’t translate out of the cryptophunk world, specifically, the Cardano die-hard fans.

Here, Charles is some sort of rock star.

He has a YouTube channel with 269k followers. He addressed his audience almost every day through this channel, talking about topics like the vaccine or Afghanistan. Like he doesn’t have anything urgent to do like working on the 6-year delayed smart contract.

It’s kinda weird to see the comment of his video talking about how he has a nice haircut. It’s like Satoshi Nakamoto on another level (I doubt even bitcoiners would treat Satoshi as such.)

Anyway, Charles likes being the center of attention, which indicates some narcissism going on here too. Rumors have it that he wanted to be made the CEO of Ethereum back in the day.

When you look into the Cardano community, it looks like they live in their own world with their own god. Separate from reality. Unlike the crypto community, most people in Cardano aren’t technical. That’s another red flag that indicates clueless people are lured in by promises of technology they can’t even comprehend.

And they got militant behavior too. If you think bitcoin maxis are toxic, wait until you get a swarm of Cardano defenders when you post something critical toward Cardano on Twitter.

Little stuff that is weird

Hiring marketing

In 2019, Cardano hires a world-class advertising agency McCann to handle its marketing. This practice is looked down on heavily among crypto folks. Because if a blockchain is built with true crypto ethos, they would stick to organic network-effect — in other words, people use the system and like it.

Like, why would a blockchain need marketing?

Suspiciously staking-focused

Staking is good, in a way that keeps the price less volatile and it’s been somewhat working for Cardano.

However, be careful of a project that tells you to stake and no other. Cardano has no DeFi, no utility besides just Staking. Staking is their number one promotional weapon. Stake and get more Cardano. This is a textbook recipe for Ponzi. Investors are asked to lock their fund, they will get interests, funded by the new entrant’s money. This is how Bernie Madoff used to operate too.

(another crypto that has no other utility than staking is HEX. One look at the website and you know it’s a scam.)

Shiller account

This one comes from personal experience which I know many people long enough in the crypto space — and Crypto Twitter — will agree.

If you go to “ADA Cryptocurrency” topic on Twitter, you will find a top inflencers account that promotes ADA non-stop. In fact, there’s nothing they talk about other than ADA (with some motivational quotes and bitcoin stuff mixing in — and selfies.)

These accounts seem to be following this formula: Women. Attractive. From developing nations. The one I observe looks like they’re from Thailand, Eastern Europeans, some from United States too.

Dig internet for so long and you’ll find the history of Charles and women, including a comment during a Lex Friedman podcast which made me go 🤮

It is just… creepy.

That’s not to mention anonymous accounts that swarmed any popular Twitter post that criticizes Cardano. Is this the work of McCann?

At this point, is Cardano a meme coin like Doge?

Nah, Cardano’s not even funny.

At least Dogecoin promotes itself as a joke. Cardano markets themselves as the real stuff, misleading investors especially the ones that aren’t that crypto-savvy. It’s one big elaborate fraud that’s waiting to collapse if Cardano indeed can’t deliver what they promise.

This brings us to the latest hype of Cardano, which at this point seems more mythical than ever.

It’s the smart contract.

Cardano’s Smart Contract Deployment is the event to watch

A scam can promise everything and deliver nothing only for so long. In this bull market, the pressure is getting higher for them to ship something.

They can avoid it for too long. So the date is set at September 12, when they will deploy the Alfonzo upgrade that will support smart contracts.

Finally, after all these years.

Only, what’s with this problematic testnet launch?

MinSwap, a decentralized exchange that aims to the Uniswap of Cardano, is launched this weekend on Cardano testnet, only to fail to handle transactions.

As it turned out, they can only handle one transaction at a time due to some fundamental flaws in the UTxO mechanism they are using.

To solve this, Cardano basically needs to do re-design. Another 6 years?