Crypto Analyst Declares $ADA âDead to Institutionsâ, Gets Schooled By Cardano Community
On 3 July 2024, Ben Armstrong, also known as BitBoy Crypto, made a bold statement on the social media platform X (formerly known as Twitter). Armstrong declared that Polkadot (DOT) and Cardano (ADA) are no longer viable investments for institutions, suggesting that this perception would ultimately undermine their legitimacy. He clarified that despite this, these cryptocurrencies might still experience price increases and offer returns during the current bull market, but these returns would be relatively modest.
Armstrongâs Statement
Armstrong expressed his opinion that institutional investors have lost interest in Polkadot and Cardano, which he believes will lead to their decline as legitimate investments.
However, he acknowledged that both cryptocurrencies could still generate profits during the current market cycle, albeit with so-so returns:
âI want to be clear. Recently, I said $DOT & $ADA are both dead to institutions. Which ultimately will lead to their death as legitimate investments. This DOES NOT mean they wonât pump and offer returns to investors in this bull run. They will. Returns will just be mid.â
The Crypto Communityâs Response
Armstrongâs statement quickly drew sharp rebuttals from prominent members of the Cardano community, who took to X to defend their projects.
Here is a summary of their responses:
One community member found it ironic that Armstrong declared Polkadot and Cardano as âdeadâ despite their robust governance mechanisms, which are designed for long-term sustainability and flexibility.
Another respondent highlighted Cardanoâs extensive on-chain governance system, backed by a substantial fund and one of the most active communities in the crypto space. They argued that such engagement contradicts the idea that these projects are no longer viable.
A different user bluntly dismissed Armstrongâs statement as unfounded and nonsensical.
Another emphasized that Cardanoâs primary focus is on user adoption rather than venture capital funds. They noted that investments often follow the network effect, meaning a strong community and solid technology will attract real users and, eventually, institutional investments.
An additional response argued that cryptocurrencyâs primary purpose is to serve people, not institutions. They criticized the mentality that a projectâs value is solely determined by rising prices.
One user expressed disbelief at Armstrongâs claims, suggesting that Armstrongâs perspective might be influenced by personal biases or misunderstandings.
Another community member questioned the technical basis of Armstrongâs opinion, emphasizing Cardanoâs strong track record of uptime, self-governance, and a dedicated community. They argued that these factors make Cardano a viable and sustainable blockchain.
Lastly, one user suggested that Armstrongâs negative comments might stem from personal grievances, implying that his opinions are not objective.
Analysis
Armstrongâs comments sparked a vigorous defense from the Cardano community, highlighting several key points:
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 Armstrongâs claim that they are âdead.â
Community Engagement: Cardanoâs supporters emphasize the projectâs strong and active community, which is crucial for the networkâs success. They argue that engaged communities can drive adoption and innovation, making the project attractive to both individual users and institutional investors.
Technological Strengths: Cardanoâs 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 Armstrongâs assertions.
Institutional Interest: While Armstrong claimed that DOT and ADA are âdead to institutions,â community members pointed out that institutional interest is not the sole determinant of a projectâs success. They argue that a strong network effect and real user adoption are equally, if not more, important.
Itâs kind of funny to point out the only coins with a governance mechanism (=long term participation, flexibility and sustainability baked in) as âdeadâItâs not because we say so that ADA and DOT will do so great, itâs just that theyâve been designed to outlast everything else
â ADA whale (@cardano_whale) July 4, 2024
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