Bloody ADA!

Cardano: Why keeping this exchange at arm’s length was the right choice for ADA

This starts off being a story of how ADA dodged a bullet with Charles Hoskinson refusing to list the token on Gemini. However, it soon turns into analysing why ADA seems currently under-valued - and bleeding value.

On assessing ADA’s condition on-chain, it showed that it could be a long ride for investors. This was due to the position demonstrated by the Market Value to Realized Value (MVRV) ratio. As of this writing, the 30-day MVRV ratio was -13.57%.

While this was some respite from its 19 December value, ADA was still off producing profits for its holders. The Z score was also put up a similar show at -1.28. An explanation meant ADA was undervalued but no point of indication to push an accumulation commencement.

This may be a recurring scenario with various "utility" coins, as utility prices keep going lower. When the UK built its railway network, many companies went bust after their routes started operating; their projected profits based on a new premium service quickly vanished as competition drove prices downwards, especially competition with existing networks such as the canals.

In this sense, utility tokens behave more like commodities than securities.

PS. "Bloody Ada!" is a British expression, of unknown origin.