Cardano (ADA) Lovers! You are Being Played
NAIROBI (CoinChapter.com) — Cardano (ADA) lovers are in for a shock! The so-called “decentralized blockchain” project may not be that decentralized, according to concerns raised by Justin Bons, founder of crypto fund Cyber Capital.
Those Cardano ‘Genesis Keys’ Are Horrible for Decentralization
Notably, Bons raised concerns about Cardano’s “genesis keys,” the initial set of cryptographic keys used to create the Cardano blockchain. He argued that Input Output Global (IOG), the group behind the Cardano blockchain, controls 5 out of 7 keys that enable them to modify records on the ledger unilaterally.
One of the core principles of blockchain technology is decentralization, where no single entity has undue control over the network. The fact that IOG controls a majority of the genesis keys may be seen as a deviation from this principle, leading to worries about the security, fairness, and resilience of the Cardano network.
On a positive note, Bons acknowledged Cardano’s efforts towards on-chain governance with the Voltaire upgrade.
Bons Faces Flacks For Speaking Out Against Hoskinson’s Project
The Cardano community, probably those with investment exposure in the Cardano project, spoke out against Bons for his anti-Cardano comments.
For instance, Jaromir Tesar, a Cardano user, argued that genesis keys are only tools for triggering hard forks, adding that they are soon to be deprecated.
“Genesis keys have fixed limits and soon governance will pass to the Cardano community,”
he noted.
Cardano content creator Big Pey also defended Cardano, noting that its on-chain governance will improve with the upcoming Voltaire upgrade. (But wait! Didn’t Bons say that himself, so what’s the problem here?)
Analysis of Cardano (ADA) Price Trends
Cardano’s market activity shows notable trends. On May 22, ADA traded at $0.4833, down 1.96% in 24 hours.
On May 20, ADA’s price broke the $0.47 resistance level. The Relative Strength Index (RSI) indicates a bullish divergence, suggesting increasing momentum. If this trend continues, ADA might target the next resistance at $0.52.
From May 10 to 15, ADA bounced off the $0.42 support level twice, forming a double-bottom pattern. This pattern often indicates a trend reversal. If ADA breaks above $0.52, it could rally to $0.60, a significant resistance level from April. However, if ADA fails to sustain above $0.47, the $0.45 level provides a strong support zone, reinforced by the 61.8% Fibonacci retracement level.
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