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How Does The Cardano Community Deal With FUD And Ignorance?

Published 25.3.2024

Cardano is facing a wave of Fear, Uncertainty, and Doubt (FUD) from various quarters, with many choosing to overlook it. There are numerous instances to cite. CoinDesk, which was under the ownership of Digital Currency Group until recently, has consistently maintained a negative stance towards Cardano. The Cardano community has had a similar experience with Cointelegraph. K33, an analytical firm, issued a two-page research note advising the sale of ADA. In Messari’s annual report outlining theses for 2024, Solana is mentioned over 65 times, while Cardano doesn’t get a single mention, possibly due to the Messari CEO’s investment in Solana. DeFi Llama has manipulated data. Despite the Cardano treasury holding a comparable amount of ADA in dollar terms to the Ethereum Foundation’s ETH holdings, it is conspicuously absent from the list. Cardano is often omitted from many statistics, potentially because it could top the category. Crypto Reddit admins intentionally removed an article about the Edinburgh Decentralization Index. Tether and Circle have refrained from minting their USD-backed stablecoins on Cardano, even though these stablecoins are present on over 60 other chains. The list of similar examples could go on. Despite these challenges, Cardano continues to strengthen, largely due to its robust community. How does this community navigate the negative sentiment from influential entities? We will explore this in the article.

Quality May Not Correlate With Capitalization

The quality of a blockchain project may not necessarily be reflected in its market capitalization. A common misconception, particularly among newcomers, is to equate a project’s worth with its market cap. This can lead to decisions based on short-term price surges. The mindset of ‘if the numbers go up, the project must be good’ is prevalent in the crypto industry. This could be attributed to the fact that many newcomers lack experience in traditional investment or are influenced by marketing tactics and incentivized influencers.

Throughout the evolution of cryptocurrencies, there have been numerous instances of influencers being exposed for accepting bribes to endorse projects or disseminate misinformation. Some influencers openly acknowledge receiving payment for promotional activities, while others do not. These influencers often make grandiose promises, such as a specific project skyrocketing in value or possessing superior technology.

While such behavior is unethical, it is not surprising. Many influencers strive to amass influence with the ultimate goal of being compensated by the project development team.

The behavior of crypto media and various aspiring analysis teams mirrors this. The reason? The crypto sphere is predominantly driven by greed. Journalism, reports from aspiring analytics firms, and even analytics tools are often riddled with low-quality or deceptive data.

If an individual has the power to sway public opinion, they also possess the ability to influence the market capitalization of projects. While this may result in profits for some, it often leads to many being deceived and incurring losses. The greatest casualty in this scenario is the cryptocurrency industry itself. A sector envisioned to usher in decentralization, privacy, fairness, transparency, and freedom is increasingly being reduced to a profit-making machine.

Individuals are often drawn to where there is a surge in price. It’s always challenging to definitively state whether the quality of a project has lured people. If the subsequent price increase is warranted, or if it’s the reverse - price manipulation has attracted individuals, leading to a further price hike, irrespective of the project’s quality. The concept of quality can be nebulous and subjective. While some individuals prioritize decentralization, others focus on airdrops or speculate on the growth of the NFT series. Even though airdrops may not enhance technological quality, they certainly have a substantial impact on market price growth.

It is difficult to get the blockchain industry to be taken seriously when it is largely associated with so many negative phenomena. Technological progress, decentralization, and innovation are overlooked as greed, fraud, speculation, and dubious trends are at the fore.

Each cryptocurrency community is distinct. There are numerous routes leading to success. Some blockchain projects can achieve long-term success, even if their journey to it involves manipulations and bribes. Technology might not always be the primary factor in achieving success. While this might seem unjust, it's an unavoidable reality.

In an industry where personal profit often takes precedence over seemingly distant or challenging objectives, such occurrences are not surprising.

Despite facing FUD and often being overlooked, the Cardano community is striving to demonstrate the project's value and merits to the world. Let's delve into some examples.

How The Community Is Fighting For Cardano

On the Reddit platform dedicated to CryptoCurrency, a post discussing the Edinburgh Decentralization Index was removed by moderators, who cited brigading as the reason. Allegedly, it’s against Reddit’s rules to share a post link on platforms like Telegram or Discord and rally blockchain enthusiasts to vote for a specific post and leave positive comments.

Interestingly, this seems to particularly irk the moderators when it involves Cardano, while similar behavior is often overlooked or even openly endorsed in other instances. This can be even observed when teams attempt to draw people to token sales.

In response to this, the Cardano community utilized community-note, a new tool on the X platform, to rectify comments made by Reddit moderators.

The community notes tool has emerged as an effective instrument for addressing biased assertions. The community has leveraged this tool in various instances. For instance, when the X CryptoDep account released a report on the top projects based on social activity, the list comprised of 10 projects. While Bitcoin and Ethereum predictably occupied the top spots, the list also included several lesser-known projects such as Azero, Rune, and Woo. Given Cardano’s robust community and its frequent trending status on X, it seems improbable that Cardano would not be present on the list.

The strength of the Cardano community is evident in their engagement with comments. This was recently acknowledged by Grayscale’s X account. Grayscale posted a tweet featuring the Bitcoin symbol (₿), which prompted the Cardano community to respond with the Cardano symbol (₳) in their comments. The tweet garnered 3.4K likes and 2.3K comments, the majority of which included the ₳ symbol. Furthermore, many of these ₳-containing comments received several hundred likes.

This was an impromptu initiative by the community. Anyone who is even slightly involved in the Cardano community would know that its members are genuine individuals, not bots, which some have attempted to assert.

The strength of the Cardano community was already evident in 2022 when Vitalik Buterin posed a question to the Ethereum community about their preferred dominant chain in 2035, assuming it wasn’t ETH. The poll was won by Cardano.

Out of 600K people voting, 250K people chose Cardano.

Cardano boasts a substantial and dedicated community of supporters, and it’s not a stretch to predict that it could rank among the top three. The high level of engagement within the Cardano community could be a reaction to FUD and disregard shown by influential entities in the crypto industry.

However, there are instances where even a strong community falls short. For reasons unknown, Tether and Circle have chosen not to mint their USD-backed stablecoins on Cardano, which has had a detrimental impact on the DeFi ecosystem. In response, the Cardano community demonstrated its resilience by funding the Mehen USDM through the Catalyst project. Recently, USDM was successfully launched on the Cardano mainnet, showcasing the community’s ability to address challenges. Unfortunately, not all such issues have a positive resolution.

Conclusion

Cardano consistently emerges victorious in numerous polls, even when it’s not explicitly mentioned. If the poll author includes an “OTHERS” option, it’s possible that “OTHERS” will win, accompanied by hundreds of comments from the Cardano community. While some might view this as a form of trolling, it raises the question of how Cardano could better establish itself. The IOG team and the Cardano Foundation have never, to my knowledge, paid influencers to speak positively about the project. Should Treasury ADA coins be used for marketing? That’s a kind of decision that is a subject of the community voting.

Some community members are contemplating the creation of new independent tools to compete with platforms like DeFi Llama, intending to accurately display Cardano information. However, this endeavor would require a significant amount of work and financial resources.

It’s worth noting that until recently, a USD-backed stablecoin was absent from the ecosystem, and scalability issues remain unresolved. These are some of the objective challenges hindering Cardano’s progress. On-chain governance, while a crucial aspect of decentralization, may not be highly valued by users. Should the IOG team have prioritized scalability (Basho era) over governance (Voltaire era)? With 1.4B ADA in the hands of the community, many initiatives that advance Cardano could be set in motion. The community will set priorities and push for quicker scalability solutions. It’s possible that with increased community involvement, some tasks will be tackled more concurrently by multiple teams. However, this is currently speculative.

Cardano is going its own way and at its own pace. The community handles FUD effectively. This is likely the most encouraging news for everyone, as a project with a loyal and strong community has no reason to fade away.

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