Cardano has lost the least among the top-10 cryptos, Why?
The crypto markets are in a state of shock and panic, again. While the summer 2022 crash was…
The crypto markets are in a state of shock and panic, again. While the summer 2022 crash was bad, many did not expect things to turn for the worse later in the year. However, that is exactly what happened. The events surrounding FTX’s collapse have brought on some real fears among crypto users and investors. Almost all top-10 cryptos witnessed double-digit losses in yesterday’s carnage, however, Cardano (ADA) managed to keep its losses at a minimum, under 10%.
Bitcoin (BTC) and Ethereum (ETH) are both down by over 10% in the last 24 hours. Solana (SOL) is down by nearly 30% and XRP is down by nearly 10%. However, Cardano (ADA) is down by only 6.3%. This is surprising to some, but upon closer examination, the reasons become visible.
How has Cardano protected itself?
One why ADA got away with lesser losses is due to it not being listed on FTX. The token was scheduled to be listed on FTX. The exchange’s CEO Sam Bankman-Fried said that the reason ADA was not on FTX is that it is a new token. Who would’ve known that not being listed on the popular exchange would in fact turn out to be a boon.
Secondly, the collapse of FTX, led to the plummet of Solana prices, due to the exchange dropping its SOL holdings. SOL is Cardano’s rival currency, and its fall gave ADA another boost.
Furthermore, ADA’s coin distribution is almost entirely from retail, that is, they do not rely on venture capitalists. Also, the ADA network is very strong and largely impenetrable.
Cardano founder, Charles Hoskinson went live on his YouTube channel to speak about the Binance-FTX situation. Hoskinson predicted that the acquisition deal had a more than zero chance of failing, which turned out to be the case after all.
At press time, ADA was trading at $0.351080, up by 1.8% in the past hour. But, the token is down by 6.3% in the last 24 hours. However, ADA is still 88.6% down from its all-time high of $3.09, attained in September of 2021.
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