Grayscale, a leading crypto asset manager, has assessed the Pros and Cons of Cardano, the third-largest crypto asset, in a new report. This report is a part of educational cryptocurrency overviews named “Building Blocks”.
Grayscale has been working on the overviews of the cryptocurrencies and named this series of overviews “Building Blocks”. They reveal the advantages of crypto-asset under review and the risk associated with it as well. Recently, they have chosen the third-largest cryptocurrency, Cardano, and revealed its Pros and Cons. Cardano is the thrid largest crypto asset by trading volume.
Pros and Cons of Cardano:
First, we will start with the Pros of Cardano and then move to the Cons. The first and most important strength of Cardano is the man behind this project, Charles Hoskinson. The second one which is considered to be the forte of the project is the treasury of the Cardano, which is currently boasting a war chest of $1.5 billion.
The other advantages are a strong community, wide accessibility, and decentralization (After Shelley’s upgrade it became possible for Cardano). Cardano crossed the milestone of becoming the third-largest crypto in July 2021.
Risk involved with Cardano:
As we are discussing the Pros and Cons of Cardano, the cut-throat competition in the smart contracts is risky for Cardano. The Blockchain has seen little utility despite the launch of smart contracts. The adoption of the DeFi application is yet to be seen, Grayscale report claimed. Cardano can be overvalued due to its low transaction fees.
No one can deny these Pros and Cons of Cardano revealed by the Grayscale. The assessment was done very closely and sharply. I think that Cardano has the potential to cross Ethereum. What happens next no one knows as the future is unpredictable and full of surprises.
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