The crypto apocalypse is here, but many speculators think Cardano (ADA) will survive.
To explain, Cardano was the second-most trending cryptocurrency on 15 June 2023. Cardano is surging as the SEC tries to destroy competitors such as Polygon (MATIC). For example, Cardano’s Market Capitalization rose from $8.52 billion on 10 June 2023 to $9.09 billion on 15 June 2023. However, Cardano’s Market Cap fell from $13.29 billion on 4 Jun 2023.
Hence, the Crypto Apocalypse is helping Cardano. In contrast, Polygon, which some media sources name as an SEC target, is falling. For example, Polygon’s Market Cap fell from $8.22 billion on 4 June 2023 to $5.49 billion on 15 June 2023 2023.
The SEC will Come for Cardano (ADA)
I suspect speculators think Cardano is SEC-proof. However, I cannot see why the US Securities and Exchange Commission (SEC) will not target Carando. I think SEC Chair Gary Gensler wants to destroy the crypto and decentralized finance (DeFi) for unclear reasons.
To elaborate, Cardano is a DeFi solution. I think DeFi is Gensler’s true target. For example, Cardano is a DeFi company that offers solutions such as the Daedalus Wallet.
They claim, Daedalus downloads a full copy of the Cardano blockchain and validates every transaction in its history. Cardano’s website claims Cardano is “completely trustless operation” that does not require third-party hosting. Notably, Daedalus allows users to manage many wallets.
Daedalus is a DeFi solution because they claim it offers unlimited accounting. Worse I think they built Daedalus to violate some laws.
Is Daedalus illegal?
I think they built Daedalus and Cardano to violate Know Your Customer (KYC) and Anti-Money Laundering (AML) laws.
The Bank Secrecy Act requires US financial institutions to and other firms to implement AML rules. Regulators design to keep criminals from using financial institutions to “clean” or “launder” dirty money. For example, cartel bosses want to convert drug money into cash that they can invest in the stock market.
The USA Patriot Act requires investment and financial firms to verify all clients’ identities. For example, making El Chapo prove he is a businessman and not a cartel boss. They call this Know Your Customer, or Know Your Client. In particular, the Patriot Act requires organizations to conduct customer due diligence and ongoing monitoring of each customer’s account.
Cardano Admits to violating US Laws
The Daedalus website admits “Cardano is a software platform ONLY and does not conduct any independent diligence on, or substantive review of, any blockchain asset, digital currency, cryptocurrency or associated funds.”
Hence, Cardano’s builders admit they violate the USA Patriot Act and the Bank Secrecy Act on their website. Thus, Cardano is violating US law now. I imagine Cardano is violating similar regulations in other regions including the European Union (EU) and the United Kingdom.
To elaborate, Cardano’s developers are trying to get around US law by calling their platform software. This is true, but Cardano is software that functions as a financial institution. Hence, Cardano is a digital financial institution.
They did not write US law to deal with such an innovation. Instead, Congress wrote Federal laws to cover brick and mortar banks and traditional financial markets.
We need to regulate solutions such as Cardano because they are evolving before our eyes. For example, I think artificial intelligence (AI) will soon operate many DeFi platforms which make them more powerful.
DeFi Bans will fail
I also think Gensler’s solution of banning DeFi will fail. US bans will just move DeFi offshore will it make money for others. For example, DeFi will move to Singapore, Switzerland, Estonia, Malta, the United Kingdom, or Hong Kong. Hence, the Europeans and Chinese will own DeFi and control the world’s financial system.
To elaborate, technologies such as Cardano will allow US citizens to access DeFi and violate federal laws. The only way, they can stop that will be to shut down the internet and social media. A better solution is to offer regulated American alternatives or official DeFi such as FedNow and a Central Bank Digital Currency (CBDC).
History shows bans create black markets and empower criminals. Organized crime and gangsters exist because the black market finances them. If we ban cryptocurrency and DeFi, we will create a digital black market and empower digital criminals.
Worse, by not offering alternatives we force ordinary people to use the black market. I think Sheriff Gensler’s efforts to clean up the crypto Wild West will be as big and as destructive a failure as the war on drugs.
Cardano (ADA) is a Hacker’s Paradise
If the claims on Cardano’s website are true. I think Cardano’s ecosystem is a hacker’s paradise.
For example, the whitepaper admits “All the research and technical specifications that underpin Cardano are publicly published and available to the community.” Hence, they give the bad guys everything they need to hack Cardano. That’s just dumb.
Additionally, Cardano’s Marlowe Playground offers “model financial tools.” Marlowe’s ecosystem provides everything you need to develop smart contracts and decentralized apps (DApps). Therefore, they put all the materials fraudsters need to build fake and malicious smart contracts online for them to use.
Thus, it appears Cardano is empowering bad guys by giving them all the tools and information they need. Hence, I think the idealism that drives Cardano is the greatest threat. Criminals can use the tools they put online to build better weapons for fraud and theft.
Obviously, one target for the hackers will be the money moving through the Daedalus wallet. I have to ask who will you complain to if crooks steal your Bitcoin (BTC) from Daedalus. If crooks hack your bank, you can complain to the FDIC and have your losses covered by FDIC insurance.
What Value Does Cardano (ADA) offer?
Despite the dangers, Cardano (ADA) is popular. For example, CoinMarketCap listed ADA as the 7th largest cryptocurrency by Market Cap and the 15th largest crypto by Market Volume on 15 June 2023. Moreover, CoinMarketCap listed as Cardano (ADA) as the second most trending cryptocurrency behind the noxious Pepe (PEPE) on 15 June 2023.
Moreover, CoinMarketCap gave Cardano a $9.09 billion Market Cap, a $302.32 million 24-Hour Market Volume, a 25.98¢ Coin Price, and an $11.711 billion Fully Diluted Market Cap on 15 June 2023. They base those numbers on a Circulating Supply of 34.915 billion ADA, and a Total Supply of 45 billion ADA.
I think speculators need to avoid Cardano (ADA) because they built it to break KYC and AML laws. I predict Cardano will lose all its value because authorities will ban it. Worse, criminals will hack it and steal the users’ funds. The risks of Cardano far outweigh any potential value. Stay far away from Cardano if you want to keep your money.
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