Cardano

Impact

ADA price is at risk as the token, native to the Cardano blockchain, encounters potential volatility amid a controversial $74 million proposal. As the community and investors scrutinize the implications of this significant funding request, concerns about governance, transparency, and strategic direction have emerged. Analysts suggest that this proposal could trigger a substantial price correction, with forecasts indicating a possible 10% drop in the Cardano price. As stakeholders weigh the potential outcomes, the future of ADA remains uncertain, highlighting the intricate balance between innovation and investor confidence in the crypto market. 
Compounding these challenges, ADA price struggles along with the rest of the market, having dropped 3% over the last 24 hours. The total crypto market cap is also down 1.7%, as most traders have turned bearish, anticipating a further decline. Meanwhile, the Cardano community is in an uproar, as a leaked proposal revealed a request for 200 million ADA tokens. The backlash has been intense, as this incident adds salt to the injury caused by the postponed Chang hard fork upgrade. 
<h2 id="impact-of-200m-cardano-proposal-on-ada-price">Impact of 200M Cardano Proposal on ADA Price</h2> 
The debate on the crypto X Cardano community about the leaked request for 200 million ADA ($74.3 million) has evoked mixed reactions from the community. 
The leaked proposal from the early morning of August 26 revealed that the venture capital organization 3UTxO planned to request the specified amount once Voltaire went live. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;">CARDANO Back Room Grift <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"> 200 Million ADA at stake <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f921.png" alt="🤡" class="wp-smiley" style="height: 1em; max-height: 1em;"> note: It’s not about me, It’s about Us!<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f447-1f3fe.png" alt="👇🏾" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/M3mndECDKC">pic.twitter.com/M3mndECDKC</a> 
 — ESCO (@ESCOweb3) <a href="https://twitter.com/ESCOweb3/status/1827476217299382390?ref_src=twsrc%5Etfw">August 24, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
Jaromir Tesar, one of the most vocal ADA advocates, published a detailed <a rel="nofollow" href="https://x.com/JaromirTesar/status/1828047222602109110">explanation of why there isn’t enough ADA in the treasury</a> to dish out 200 million coins for a single proposal even if Cardano becomes decentralized. 
According to <a rel="nofollow" href="https://app.santiment.net/s/-4raasCH">Santiment</a> data, the Cardano inflation rate has dropped to 0.42%, the lowest since June 6. 
 <img decoding="async" class="aligncenter size-full wp-image-214175" src="https://coingape.com/wp-content/uploads/2024/08/Cardano-ADA-19.16.19-26-Aug-2024.png" alt="Cardano inflation rate" width="3840" height="1300" srcset="https://coingape.com/wp-content/uploads/2024/08/Cardano-ADA-19.16.19-26-Aug-2024.png 3840w, https://coingape.com/wp-content/uploads/2024/08/Cardano-ADA-19.16.19-26-Aug-2024-300x102.png 300w, https://coingape.com/wp-content/uploads/2024/08/Cardano-ADA-19.16.19-26-Aug-2024-1224x414.png 1224w, https://coingape.com/wp-content/uploads/2024/08/Cardano-ADA-19.16.19-26-Aug-2024-768x260.png 768w, https://coingape.com/wp-content/uploads/2024/08/Cardano-ADA-19.16.19-26-Aug-2024-1536x520.png 1536w, https://coingape.com/wp-content/uploads/2024/08/Cardano-ADA-19.16.19-26-Aug-2024-2048x693.png 2048w, https://coingape.com/wp-content/uploads/2024/08/Cardano-ADA-19.16.19-26-Aug-2024-150x51.png 150w" sizes="(max-width: 3840px) 100vw, 3840px">Meanwhile, Cardano Founder Charles Hoskinson emphasized that they postponed the Cardano Chang hard fork upgrade to September 1 to allow more time for completing the necessary upgrades. If the proposal went unnoticed and received approval, it would have negatively impacted ADA Price, which is down for the day only because the entire market is retracing. 
<h2 id="shorts-are-increasing-2b-at-risk-of-loss">Shorts are Increasing, $2B at Risk of Loss</h2> 
As data from the Coinglass Liquidation Map (LM) shows, futures traders have identified an opportunity to use short ADA. Currently, the cumulative Short liquidity leverage is larger in contrast to longs. This imbalance suggests that the overall market is bearish on Cardano since traders anticipate that the ADA price will fall lower.&nbsp; 
<img decoding="async" class="aligncenter size-full wp-image-214176" src="https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192014.png" alt="future traders" width="1456" height="489" srcset="https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192014.png 1456w, https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192014-300x101.png 300w, https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192014-1224x411.png 1224w, https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192014-768x258.png 768w, https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192014-150x50.png 150w" sizes="(max-width: 1456px) 100vw, 1456px">A deeper analysis of the LM shows a huge sell wall (right side), around $0.379, while the buy wall is decreasing on the left side.&nbsp; 
The <a href="https://coingape.com/price/cardano/">Cardano price</a> may find some support between $0.355 and $0.367 and between $0.331 and $0.347. However, <a rel="nofollow" href="https://app.intotheblock.com/coin/ADA">IntoTheBlock</a> data shows that if the ADA price falls below that, over $2.3 billion worth of Cardano may be lost.&nbsp; 
<img decoding="async" class="aligncenter size-full wp-image-214177" src="https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192054.png" alt="ADA IOMAP" width="1609" height="505" srcset="https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192054.png 1609w, https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192054-300x94.png 300w, https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192054-1224x384.png 1224w, https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192054-768x241.png 768w, https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192054-1536x482.png 1536w, https://coingape.com/wp-content/uploads/2024/08/Screenshot-2024-08-26-192054-150x47.png 150w" sizes="(max-width: 1609px) 100vw, 1609px">According to <a rel="nofollow" href="https://coinalyze.net/">Coinalyze</a>, the Cardano open interest (OI) increased 5.27% while the price dropped 4.5% over the last 24 hours, indicating traders are entering shorts.The ITB graph shows shorts building up, confirming that the price of Cardano is headed lower. 
The post <a href="https://coingape.com/markets/ada-price-risks-10-drop-amid-74m-controversial-proposal/">ADA Price at Risk: Controversial $74M Proposal Stirs Market Turmoil</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

ADA Price at Risk: Controversial $74M Proposal Stirs Market Turmoil

Table of Contents

Coingape News Media

Other articles published on Aug 27, 2024

Rhodium Enterprises Files for Bankruptcy as Bitcoin Mining Pressures Mount

Crypto Market Experiences Weak Volumes and BTC Searches for New Lows

Vitalik Buterin Reveals $139K Salary at Ethereum Foundation

Will the real WazirX owner please stand up?

Binance CEO Calls for US Intervention Before Nigerian Trial

China Recognizes "Virtual Asset" Transactions in New AML Law Interpretation Amid Crypto Unban Rumors

Join our free newsletter for daily crypto updates!