Cardano’s reliability isn’t often put to the test, but the past two weeks have been nothing short of a roller coaster ride, marked by DDoS attacks, major network developments, and ADA spiraling despite bagging significant wins.
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In this edition of DailyCoin Regular, we talk about:
- Cardano’s recent DDoS attack.
- The new Interim Constitution Committee.
- Cardano Community is making a case for a USDT integration.
- ADA’s lackluster performance.
Join our resident Cardano expert, Insha Zia, as he sheds light on these exciting developments.
Table of Contents
News and Events: Understanding the Impact
Cardano Successfully Repels DDos Attack
On Tuesday, June 25, attackers launched a distributed denial-of-service (DDoS) attack on Cardano by sending several transactions, executing 194 smart contracts labeled “REWARD.”
The attackers looked to overload the network with unnecessary processing to steal staked ADA.
While the attack momentarily increased network load above normal traffic levels, leading to some SPOs being “negatively affected,” the overall impact was minimal. Intersect reported only a “small impact on overall transaction timings and some reduction in chain density.”
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Instead, Philip Disarro, founder and CEO of Anastasia Labs, a Cardano-focused development platform, quickly identified the DDoS attack strategy and shared a countermeasure on X, enabling developers to reclaim their stolen ADA.
At press time, Intersect, Cardano’s member-based organization, rolled out an upgrade to thwart such attacks in the future.
Cardano Attackers Linked to Kraken
While ADA holders celebrated the network’s resilience against the attack, they also took out their torches and demanded that the attackers be held accountable.
Considering Kraken is an AML and KYC-compliant crypto exchange, the exchange likely has personal information that could lead to the attackers’ arrest. While it’s uncertain if Kraken will yield to pressure from the Cardano community, the exchange can report criminal behavior to the authorities. However, this presents a dilemma.
Some community members are divided on whether the attackers’ actions were illegal. They argue that the attackers merely sent numerous transactions to the network, something Cardano is designed to handle.
Conversely, others contend that under the United States Federal Computer Fraud and Abuse Act, such an unauthorized DDoS attack is a criminal offense, potentially resulting in up to 19 years in prison and a $500,000 fine.
Cardano Community Still Rallies For a Major Stablecoin
The Cardano community remains vocal in its quest for a major fiat-backed stablecoin. Yet despite the long-running, persistent calls, no significant progress has been made in bringing a major stablecoin to the Cardano blockchain, leaving a notable gap in its ecosystem.
Recently, Tether announced it was withdrawing USDT support from Algorand and EOS, citing a shift towards “community-driven” blockchains. The message reignited efforts within the Cardano community to bring a major fiat-backed stablecoin to the chain, arguing that their blockchain epitomizes the community-driven ethos Tether claims to prioritize.
ADA Whale led the charge, stating, “Our community is deep and strong.” The Cardano influencer highlighted Cardano’s community-driven Proof-of-Stake model and upcoming Chang hard fork as key examples of the blockchain’s alignment with Tether’s stated priorities.
Intersect Welcomes New Constitution Committee Before Chang Hard Fork
Cardano is fast approaching the final chapter of its ambitious roadmap: Voltaire. This upgrade promises to complete the puzzle by implementing CIP-1694, transforming the Proof-of-Stake network into a fully decentralized government.
Voltaire will be marked by the upcoming Chang hard fork, scheduled to occur sometime in Q2. However, before this transition can occur, the network must be handed over to the interim constitution committee. This committee will ensure the implementation of the interim Constitution and vote on the inaugural on-chain governance actions.
After much anticipation, Intersect has announced the elected interim constitution committee, featuring renowned Cardano veterans such as Richard McCracken and Adam Dean, among others.
Cardano Struggles to Move Despite Major News
For the past three months, Cardano has been grappling to stay above $0.45 and battling against the stubborn $0.50 resistance. However, each attempt has fizzled out, with ADA plummeting at every test, highlighting a persistent lack of confidence in the asset. Even major network developments like the upcoming Chang hard fork and its recent win against the DDoS attack have struggled to ignite a rally.
Despite these relentless attempts to break through resistance, ADA has instead slipped below $0.40, marking a new yearly low.
Current Outlook
At press time, confidence in Cardano remained glaringly low, as evidenced by its significantly negative long-to-short ratio. This made it crucial for the protocol to regain momentum in the following weeks.
Cardano has nosedived to $0.35 in the past week, marking its lowest point this year. ADA hasn’t touched these levels in over six months. According to Coinglass’s ADA liquidation heatmap, there are barely any clusters of orders, suggesting that ADA might move sideways and remain below $0.40 for a while.
Cardano’s future performance hinges on its ability to attract fresh capital, which could provide the necessary momentum for a breakthrough. However, given its lagging nature, there’s skepticism about whether new funds will flow into ADA soon, especially with Bitcoin and Ethereum hovering near their all-time highs.
On the Flipside
- For most of 2023, Cardano struggled to perform. However, in Q4, it turned the tide, closing out the year as one of the top-performing assets.
- ADA’s yearly growth has flipped negative, marking a 43% loss for the year.
- Hoskinson asserted that once CIP-1694 goes live following the community vote and hard fork, the network will become “more decentralized than all crypto,” including competitors Bitcoin and Ethereum.
Why This Matters
Confidence in Cardano has clearly waned despite the network making significant strides in development. Investor sentiment towards ADA is decidedly bearish, which could seriously affect the asset’s price performance.
Read the last Cardano Regular:
DailyCoin Cardano Regular: Countdown to the Age of Voltaire Nears
Cardano community pressures Kraken to Out Attackers:
Cardano Community Pressures Kraken to Out DDoS Mastermind
