• Cardano founder Charles Hoskinson explains why the smart contract network has partnered with African countries.
  • Hoskinson dismissed rumors of ADA burn, stating that Cardano is focused on stability.
  • Analysts predict Cardano's return to the top three cryptocurrencies by market capitalization.

Cardano founder Charles Hoskinson reveals that ADA is counting on the "smart cow effect." The smart cow problem is when a group of individuals is faced with a technically difficult task, one of the members solves it. Hoskinson expects Cardano's partnerships with African governments to influence regulators in the United States. 

Cardano forges partnerships in Africa with focus on real-world blockchain applications

Charles Hoskinson, the founder of Cardano, is touring the African continent, meeting regulators and forging partnerships with governments and statesmen. 

Hoskinson believes that governments have infringed upon privacy and censored public information. He points out that US regulators have yet to focus on building the blockchain industry.

The Ethereum co-founder relies on the "smart cow effect" for Cardano to impact regulators and governments worldwide. Hoskinson noted in a recent YouTube Q&A session that Africa is uniquely poised to adopt blockchain technology faster than other continents. The continent is precisely positioned to benefit from the development of blockchain technology with the ongoing technical upgrade. 

A blog post published by Input Output Hong Kong (IOHK), the company behind Cardano, reads,

Well, Africa is a really special and interesting continent in that it's going through a massive upgrade. There are no allegiances to the systems of the past because those systems haven't historically worked out so well here. So that means over the next 10, 20 years, every single thing – from how compliance works to how stock markets are going to work to how national ID works to how academia is going to work – is up for change.

The founder dismissed the recent rumors of the implementation of the burn policy in Cardano. Cardano does not have plans to burn tokens. The current provision to stake ADA has attracted over 70% of the circulating supply. The percentage of staked tokens continues to rise as Cardano prepares for the next upgrade of its network. 

Percentage of total ADA tokens staked since Jan 2021

Percentage of total ADA tokens staked since Jan 2021 

Analysts have predicted that ADA could make a comeback to the top five cryptocurrencies by market capitalization. Gert van Lagen, a cryptocurrency analyst and YouTuber, expects ADA to enter price discovery mode in the ongoing bull market. Lagen has evaluated the ADA price trend and compared it to the Ethereum-killer's performance in the 2017 bull run.

Side by side comparison of ADA price trend in 2018-20 and 2020-21

Side by side comparison of ADA price trend in 2018-20 and 2020-22

Lagen's 2022 target for ADA price is $22. The analyst expects Cardano's native token to cross $10 by the end of 2021 based on his analysis. 

FXStreet analysts have predicted that ADA needs to reclaim $2.10 support to turn bullish. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin active addresses hit lowest level in five years, BTC ranges below $67,000

Bitcoin active addresses hit lowest level in five years, BTC ranges below $67,000

Bitcoin (BTC), the largest asset by market capitalization, has noted a decline in its active address count per data from Glassnode. A decline in active addresses is typical at a time during a surge in Bitcoin transaction fees.

More Bitcoin News

SEC vs. Ripple lawsuit update: Regulator responds to letter regarding Terraform Labs judgment

SEC vs. Ripple lawsuit update: Regulator responds to letter regarding Terraform Labs judgment

Securities and Exchange Commission (SEC) responded to Ripple’s letter that quotes the reasons for the settlement amount being unreasonable. The payment firm had proposed a fine of $10 million, as opposed to the SEC’s $2 billion. 

More Ripple News

Gemini Earn creditors could recover their funds in coin as New York Attorney General recovers $50 million

Gemini Earn creditors could recover their funds in coin as New York Attorney General recovers $50 million

Gemini exchange had terminated its Earn program after Genesis Global Capital did not return over $900 million in assets that it owed to the platform. New York Attorney General Letitia James’ office has recovered a total of $2.05 billion from the platform.

More Cryptocurrencies News

Here’s what you need to know about LayerZero ZRO token airdrop

Here’s what you need to know about LayerZero ZRO token airdrop

LayerZero Labs CEO Bryan Pellegrino released details of the upcoming ZRO token airdrop in a recent tweet. ZRO total supply is 1 billion of which 23.8% will be directly allocated to the community and builders. LayerZero announced June 20 as a key date, it remains unclear whether this is the airdrop or entitlement date. 

More Zro News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP