Cardano (ADA) Fails to React to Shelley; Founder Accused of Justin Sun Tactics
The Cardano (ADA) coin price sunk 3% leading into Monday despite the founder’s recent update on the much-awaited arrival of the Shelley update.
IOHK’s Charles Hoskinson told viewers of a recent surprise AMA that the first phase of Shelley’s testing was complete. Now, the second phase of testing is scheduled for the second week in September, while an event has been scheduled for the 28th at which more progress updates will be revealed.
Some have interpreted Hoskinson as meaning that Shelley would be launching in September. This is because he suggested in the AMA that the successful completion of the second phase of testing would mean that Cardano’s staking mechanism is essentially finished.
“In the networking test, where we actually have people connect to a unified testnet and do some form of staking. So everything that you’d want to do with Shelley, was done now for instead [of] on your PC, on a distributed system.”
Shelley Release Date Closer… But Hoskinson Still Unclear
Perhaps the market, as well as a horde of social media commenters, was skeptical of Hoskinson’s hints about Shelley. The ADA coin price proved unreactive to the news, while Twitter followers tore into Hoskinson for what they saw as Justin “Scam” tactics.
“Well u did make a few days ago an announcement that u will make an announcement, where u did announce that u will make an announcement next month…wayyyy too Justin Scam style for u. The ONLY announcement from u that all the community is waiting for for 2 years, is main net.”
TRON founder Justin Sun is well-known for his mastery of “Announception”. This is a very skilled practice where a crypto CEO trails investors along for months on the promise of some upcoming announcement – which continues to be announced but never arrives.
Hoskinson reacted with bemusement to the claims he was engaging in announception, responding on Twitter with:
“It’s amazing to me how some people are incapable of even understanding a simple statement. I didn’t make an announcement of an announcement in my AMA. I announced the next phase of the testnet in September and an event in Bulgaria on the 28th. How is this no announcement!?!?”
In the same AMA Hoskinson mentioned a third phase of testing scheduled for the near future. Whether Shelley will actually be launched upon completion of the current test phase is still unclear.
Unfair Criticism of Cardano?
Hoskinson told interviewers at Finance Magnates earlier this year that he thought the crypto community’s criticism of had been harsh. In the same interview, he reminded readers of Cardano’s long term goals.
Hoskinson criticised Facebook’s Libra for daring to waltz into underdeveloped nations and hook everyone up to their supposedly benevolent system. Hoskinson said Cardano is attempting to do much more. He said he wasn’t just going to offer low fees, but:
“I’m going there and saying, ‘we’re going to rebuild all your systems so you have fraud-free land registration, better voting systems and improved supply chains.’”.
According to Messari’s ‘Real 10’ volume statistics, Cardano is being traded at 1/100th the volume of Bitcoin. Cardano holders have been living with the assumption that ADA would naturally pump when Shelley was either announced or released. But is this really such a certainty? Yes, low volume means the coin price can be moved easier by fewer whales, but it also speaks to the lack of real trade volume among what in Cardano’s case is still essentially a niche coin.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.