This morning, cryptocurrency prices took a nosedive, perhaps as a result of broader market anxiety. Cardano (ADA), a cryptocurrency used for smart contracts, took a major hit when its price dropped at the same time as a dramatic warning from one of the project’s developers. Learn why people are concerned about the latest Cardano upgrade and if the Twitter fight is indicative of a larger problem.
Here’s why one programmer thinks Cardano might crash and burn
Adam Dean, a developer, expressed his reservations about Cardano’s upcoming update on Twitter. A bug in Cardano Node v 1.35.2 has caused the #Cardano #Testnet to be “**catastrophically** broken,” he wrote. Cardano’s Vasil upgrade requires the latest version, 1.35.2.
Even without discussing the nitty-gritty, the Vasil upgrade is a major milestone for the blockchain. As a result, it should be less difficult to create decentralized applications for the Cardano network and the network’s capacity should increase. According to Dean, the upgrade rollout is being hurried, and more testing is required. The developer asserted, “If there were a ‘nuclear clock’ for #Cardano we got dangerously close to hitting’midnight.
Nonetheless, Charles Hoskinson, the creator of Cardano, responded to the allegations by calling them “bizarre and alarmist.” The offending code has been removed, he assured his followers, and the planned upgrade has been tested extensively.
Despite Hoskinson’s assertion that the code has “been tested a dozen times and is already running,” the community has the option to postpone the release. However, this could affect dApp creators who are currently holding out for the update. As Cardano is a community-driven blockchain, the final say always rests with its users.
Implications for the Financial Markets
According to CoinMarketCap data, the value of Cardano dropped by around 15% in the 24 hours after Dean’s tweet. To put that in perspective, the price of Bitcoin (BTC) and Ethereum (ETH) both decreased by roughly 9% during the same time frame. Dean’s assertions, however, are cause for concern. The community’s trust in Cardano will suffer if the upgrade is delayed any longer. It could be disastrous if they proceed with an upgrade that is technically flawed.
When a developer expresses concern on social media, it can be hard to tell if they are actually raising legitimate issues or just releasing the pent-up emotions that are inevitable byproducts of the development process. Defining when a project is complete can be contentious, as some groups will always demand additional testing.
The difficulty arises from Cardano’s persistent branding as a reliable partner. Long-term financiers appreciate that it puts new innovations through rigorous testing and peer review. In light of this, claims that it is hurriedly implementing an upgrade are disturbing. Nevertheless, Hoskinson assures us that the code is complete and available.
Cardano’s detractors claim the network isn’t being updated quickly enough and lacks sufficient use cases to warrant supporting software. If Cardano keeps postponing the Vasil and other upgrades, developers may look elsewhere, possibly to Solana (SOL) or Avalanche (AVAX), as Ethereum substitutes.
Cardano is, in some respects, unable to win: Some say it’s moving too slowly, while others say it’s trying to force too many changes too quickly. Some of these pressures can be seen in the recent public spat.
Decide carefully and not too quickly.
Consider that the price of Cardano may even go lower if you decide to make a purchase at the current low. The Vasil upgrade could be delayed due to technical difficulties, and the cryptocurrency market as a whole could experience volatility in the coming months. Invest only what you can afford to lose after doing your own due diligence and fully comprehending the risks involved.
Don’t make any hasty decisions if you own Cardano and this news has made you consider selling. Sometimes you should get out of your cryptocurrency holdings. If you have doubts about its future success, or if your initial reasoning for investing in it is no longer valid, you may decide to sell. In order to decide if this is a minor issue or a fundamental problem with the blockchain, you should investigate Dean’s claims thoroughly.
Leading cryptocurrency apps of 2022 and beyond (Additional incentives such as bonuses and zero percent commissions)
We adhere strictly to the Golden Rule, so please note that the views expressed here are our own and have not been vetted by any of the featured advertisers. Unfortunately, not every deal out there is included in the Ascent’s coverage. The Ascent’s editorial content is created by a different analyst team than The Motley Fool’s editorial content. In addition to Solana, Emma Newbery is invested in Avalanche, Bitcoin, Cardano, and Ethereum. Avalanche, Bitcoin, Ethereum, and Solana are all stocks that the Motley Fool owns or recommends. The disclosure policy of The Motley Fool is available on the website.
The top 5 Fall getaways in the Northeast
This story has been updated with new information. Fall brings a welcome respite from summer’s heat and humidity as well...
Giant Slide reopened in the US for the first time since going viral
Thousands of people showed up to the Giant Slide in Detroit on the first weekend it reopened since going viral.
This hiker falls to his death at the Grand Canyon
A hiker walking in Grand Canyon National Park fell approximately 200 feet to his death on Friday afternoon, according to...
Ford fixed a problem with the Mustang that caused many crashes
Ford Mustang prototype mystery of 'The Bulge' has finally been solved.
You can buy a 90s Porsche-inspired boat, if you really want to
Yes, this is a yacht made to kind of look like a 993-generation 911 cabriolet.