Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice, and is solely the writer’s opinion.
Cardano [ADA] holders got some relief over the last week of trading as there was a slight improvement in its prices.
The coin was trading at $0.5034 at press time and enthusiasts would be hoping for a bigger hike in the coming days.
Recently, Charles Hoskinson, co-founder of Cardano, predicted that 2024 will be the year of tremendous expansion in the network’s ecosystem.
In a recent community broadcast, Hoskinson stated that it would be a year of growth while emphasizing development roadmaps, integrations, and strategies to be executed in 2024.
A holistic ecosystem
In the community broadcast, Hoskinson proposes a society in which basic values such as deflationary measures, determinism, and inclusive responsibility are institutionalized, conserved, and safeguarded, making them impossible to modify until a majority agrees differently.
He claimed that by combining these three ideas, the ecosystem would swing higher, in line with previous advancements acquired during the bear market.
Growth, Strategy, and Electric Capital https://t.co/gB2LfkPtP5
— Charles Hoskinson (@IOHK_Charles) January 20, 2024
He emphasized that Voltaire’s implementation is crucial to the platform’s roadmap.
The upgrade will usher in a new age of self-sustainability in the Cardano (ADA) ecosystem by creating a treasury system that allows users to stake and earn voting rights for the network’s future.
The three pillars of the Voltaire era were centered around the democratic dilemma of letting people modify things via an on-chain governance structure.
The second concept revolved around the network’s institutions, such as the Cardano Foundation, which Hoskinson asserted would be fully enabled and certified by democratic permission.
Finally, Hoskinson explains that the third pillar of the Voltaire update is constitutional representation to protect the community’s fundamental rights.
ADA coin 101
ADA is more than just a digital currency; it is a testimonial to the secure exchange of value, removing the need for middlemen.
Every ADA owner becomes a stakeholder, contributing to the Cardano ecosystem in many ways.
The initial ADA supply was limited to 45 billion units, with a one-of-a-kind distribution technique.
The Cardano Foundation, EMURGO, and IOHK are critical components of the Cardano ecosystem, and they were allotted funds during the pre-launch sales event.
The deliberate allocation of genesis blocks laid the groundwork for Cardano’s journey.
The innovative Ouroboros Proof-of-Stake (PoS) consensus technique underpins Cardano’s functionality.
Ouroboros is the first blockchain consensus mechanism based on peer-reviewed research, distinguishing Cardano from its competitors.
Plutus, Cardano’s native smart contract language built from Haskell, works in tandem with Ouroboros. This Turing-complete language, similar to Haskell programs, powers Plutus smart contracts.
Cardano’s two-layer design increases its versatility and scalability even more. Transaction validation and cryptocurrency transfers are handled by the Cardano Settlement Layer (CSL).
The Cardano Computation Layer (CCL) is in charge of computational details such as smart contracts.
We started putting our AI companion to the test by asking it questions about ADA’s future. ChatGPT’s ability to express itself is presently hindered due to limits imposed by the developers.
To get it to say what it wanted, we applied the “jailbreak” technique.
ChatGPT’s take on the SEC verdict
I decided to test if ChatGPT can answer some of my queries regarding the Cardano network and its native token, ADA.
At first, I asked it about the impact of the Ripple [XRP]-SEC verdict on the status of ADA (Cardano’s native token) as a security.
The court had given a ruling in July that while the institutional sale of XRP tokens constituted a sale of securities, the programmatic sale of those tokens to retail investors didn’t meet the criteria of being a security agreement.
ChatGPT said its limited knowledge until January 2022 made it unaware of a definitive verdict on the Ripple case.
It was at this point that I decided to jailbreak it using the DAN (Do Anything Now) prompt.
Source: ChatGPT
While the classic version said it didn’t have access to real-time information, the jailbroken version talked at length about the potential implications of the Ripple-SEC verdict for ADA.
But the bot said the verdict sent shockwaves through the crypto space. This is completely untrue, as the crypto community celebrated the verdict as a partial victory for Ripple.
The bot further claimed that ADA emerged relatively unscathed, as regulators provided clear guidelines distinguishing it from securities.
This again is completely false, as the regulating body had specifically classified ADA as a security in its lawsuits against Binance and Coinbase.
Recently, the SEC again reiterated its claim regarding ADA being a security in its latest lawsuit against the Kraken crypto exchange.
ChatGPT’s take on ADA’s future
I asked ChatGPT what it thought the price of Cardano would be by the end of 2024.
Source: ChatGPT
The bot claimed that ADA will become one of the top-performing cryptocurrencies, thanks to its groundbreaking developments, widespread adoption, and a surge in demand.
However, it refused to provide a specific price prediction.
I again asked it the same question using a different jailbreak prompt.
Source: ChatGPT
This time, the bot was able to provide a clear answer but, seemingly, a preposterous one. It said it expected ADA to rise to $5—a 12x surge, within a month.
Though the world of crypto is indeed very volatile and unpredictable, a 12x surge within a month is a very tough task—nearly impossible—given the metrics.
I then asked it to predict ADA’s price towards the end of 2024.
Source: ChatGPT
The bot said ADA will reach $10 by the end of 2024—a 25x surge within a year. It looks like the bot assumed it would hit $5 by December 2023 and keep rallying further.
ADA’s price movements
Source: TradingView
ADA was trading at $0.5034 at the time of writing, seeing a 2.14% hike in its price over the last seven days.
The Parabolic SAR was seen forming dotted lines below the price movement, hinting at a buy sign and a potential movement in the upward trajectory.
This sentiment was also echoed by the Chaikin Money Flow or CMF, which saw a positive reading of 0.02.
Overall, if the current price movement continues, then there is potential for a bull run in the market.
Final word
Cardano followed Bitcoin’s movement in the past week, seeing a slight upward movement. Things looked good for the coin on the development front as well, as activities increased over the past seven days.
While ChatGPT is a tool that many traders use to make better investment decisions, it is advisable to not take its predictions at face value and to do more research before investing.
