Cardano Price Going to Zero? Predictions as SEC Calls ADA a Security, Charles Hoskinson Addresses FUD
The crypto market continues to process the fallout of the SEC lawsuits against Binance and Coinbase, and while Bitcoin and Ethereum have shown some signs of strength, recovering their initial dump, the Cardano price is yet to bounce.
Alongside several other big caps such as Polygon (MATIC) and Solana (SOL), Cardano (ADA) was among those cryptocurrencies labelled unregistered securities by the US Securities and Exchange Commission.
Many market participants are now divesting into low market cap coins not on the SEC’s list, including meme coins which in recent weeks have outperformed the market. Some popular assets being bought right now are Cardano based meme coin Snek (SNEK) and upcoming presale projects such as AiDoge (AI) and Wall Street Memes (WSM).
What you'll learn 👉
Cardano Price Prediction & Chart Analysis
On the weekly chart, the ADA price is down over 15% compared to BTC and ETH only being down 1-2%.
Despite a rally at the start of 2023 alongside Bitcoin, the Cardano price met resistance at the $0.45 level in April and now is in danger of breaking down under its March low of just under $0.30.
If that happened it would invalidate the bullish structure Cardano had so far in 2023 based on $0.30 being a new level of support and a higher low since the 2022 bear market. A failed bullish setup is often the most bearish signal for a crypto asset, which has led to talks of the ‘Cardano price going to zero’ across Twitter.
Having corrected as deep at 92% since its all-time high of $3.10 hit in September 2021 – and today being down 89% – ADA still has a high market cap of $11 billion.
In other words, the Cardano price could drop another 90% from its price today and still have a market capitalization of over $1 billion, at which point the ADA price would be close to zero – just a few cents.
Already being a top ten crypto asset – currently the 7th largest according to CoinMarketCap – the Cardano price may also have limited upside potential compared to low market cap assets such as new meme coins, which are exploding in price every day on Uniswap regardless of US government regulation and SEC lawsuits.
Is Cardano a Security? Charles Hoskinson Defends ADA
Founder and CEO of the Cardano Foundation and ADA blockchain platform, Charles Hoskinson has hit back at the recent FUD on Twitter.
The SEC lawsuits are nothing new – Hoskinson has long defended Ethereum (ETH) and the former Ripple (now XRP) during their battles with the SEC, and stated last year that ‘I’ve always taken a position that most Layer 1 protocols aren’t securities, because it’s bizarre and senseless to consider something that offers utility, is decentralized enough to have operators and builders throughout the world, and survives its founders passing Howie [to be a security].’
This week Hoskinson stated that the 130 pages of the SEC complains against Binance ‘seems like the next in a series of steps to implement chokepoint 2.0 in the United States’, with the ‘end goal’ of an ‘agenda based CBDC partnered with a handful of massive banks and end-to-end control over every aspect of your financial life’.
He went on to compared the US regulation not to a fair debate about compliance or legal guidance, but a politicized philosophical disagreement with the ‘very existence of cryptocurrencies and what they represent’.
Hoskinson is optimistic what the industry and ADA still have a bright future, but the Cardano price is yet to recover from its dump this week given the SEC seems intent on destroying crypto and sending token prices to zero.
Are Meme Coins a Better Investment than Cardano?
Amid the latest crypto trends such as Bitcoin NFTs, DeFi 2.0 and AI (artificial intelligence) projects, is the recent resurgence of meme coins.
While Dogecoin and Shiba Inu has seen some bounces alongside Elon Musk taking over Twitter, most of the attention has been on brand-new meme coins – even on meme tokens that run on Cardano such as Snek (SNEK) which launched in May 2023 and has a $25 million market cap.
Low market cap meme coins offer higher volatility than big caps like Cardano, often pumping by hundreds of percent within days, then crashing 50% or more – a pattern SNEK has gone through in the past few weeks.
Some upcoming meme tokens yet to have that initial run-up on exchanges are AiDoge (AI) and Wall Street Memes.
AiDoge recently sold out its presale but its native token $AI can still be bought at the listing price ahead of its token claim date on June 19th and IEO shortly after, with some backing it to explode on launch.
An AI-based meme generation platform in which users create memes with text prompts, it aims to combine two of the most popular emerging crypto trends – Artificial Intelligence and meme coins.
Wall Street Memes recently launched its public presale for its $WSM token and has rapidly raised over $5 million in seed round funding since late May.
Aiming to tokenize the meme stocks movement and be a 100% community token with no team tokens that can be dumped – an issue that affected the $WSB price. Wall Street Memes has even been replied to on Twitter by Elon Musk and some traders are backing it to be the next big meme coin.
Visit Wall Street Memes Presale
