Cardano’s founder warns of CBDC agenda, how will ADA price react?

The price of Cardano (ADA) has decreased by 3% in the past 24 hours, following the start of legal actions by the SEC which identify the altcoin as a security.

At $0.341594, ADA has decreased by 9% in the past week, although the cryptocurrency has gained by 38.5% since the beginning of the year.

However, this increase may be threatened if the SEC’s classification of ADA as a security leads to exchanges removing the altcoin, which could significantly depress its price.

Furthermore, Cardano founder Charles Hoskinson has responded to the SEC’s latest actions by claiming that there is an agenda to promote central bank digital currencies (CBDCs) at the expense of cryptocurrency, which may further harm ADA’s price.

Cardano Price Prediction as Founder Charles Hoskinson Warns of CBDC Agenda – How Will ADA Price React?

If you believe that ADA will eventually recover, now would be an opportune time to purchase the altcoin, given its oversold and discounted state.

ADA’s relative strength index (purple) has fallen below the oversold 30 level, indicating that a recovery is eventually approaching.

In addition, the coin’s 30-day moving average (yellow) has just dropped below its 200-day average (blue), forming a ‘death cross’ that can signal further losses.

Under normal conditions, such losses would have to come to a halt at some point, although the fact that ADA’s support level (green) is also declining suggests that it may be a while before this happens.

As previously mentioned, the main reason for this decline is the SEC and its legal actions against Binance and the SEC, both of which have identified ADA as an unregistered security that neither exchange should be legally listing.

Therefore, there are understandable concerns that ADA could soon be removed from a number of exchanges, at least those with a significant presence in the United States that attract the SEC’s attention.

This would be devastating for ADA, as evidenced by how XRP decreased from around $0.6 to $0.22 in the few weeks following the announcement of the SEC’s lawsuit against Ripple.

However, things are somewhat different now compared to December 2020, with the industry perhaps being more aware that the SEC’s claim that ADA (or any other altcoin) is a security does not necessarily mean that it is legally a security.

Indeed, many community members have quickly come out to argue that Cardano is not a security, with many pointing out that the coin’s initial coin offering (ICO) took place in Japan and was not open to US residents.

Others have also noted the apparent inconsistency in naming ADA as a security while excluding Ethereum (ETH), which was left out of the SEC’s actions against both Binance and the blockchain.

For this reason, there is a good chance that ADA will continue to be listed by exchanges, who may wait to see how the regulator’s latest attempts at suppressing the cryptocurrency industry play out.

According to Cardano founder Charles Hoskinson, the SEC’s actions are part of a process that will result in the introduction of CBDCs, which will be pushed on individuals at the expense of decentralized cryptocurrencies.

While Hoskinson’s warning may be exaggerated (he suggests that the US could fall into a dystopia “that would make 1984 look like a vacation”), it does highlight the serious risk that the cryptocurrency industry could be severely restricted in the coming months and years.

This may include ADA, yet given that Ripple has done a good job of fighting against the SEC, there is no reason why blockchain cannot do something similar.

If it does, ADA may be able to rally again.

Buy ADA Now

New Altcoins

While ADA and other major altcoins are potentially facing a very difficult period, a number of newer altcoins offer the potential for significant rallies, while avoiding the attention of overzealous regulators such as the SEC.

One of the most interesting of these new altcoins is ecoterra, an Ethereum-based recycle-to-earn platform that has raised over $4.8 million in the presale for its native ECOTERRA token.

Ecoterra’s platform, set to launch later this year, will incentivize users to recycle their household waste at participating recycling points. Users will receive rewards in the form of ECOTERRA and limited non-fungible tokens. Additionally, ecoterra will offer a rewards system for users who can provide proof of using renewable energy. The platform will also feature a marketplace for NFT-based carbon credits.

This ambitious ecosystem has contributed to ecoterra’s successful presale, which interested investors can join by visiting the official ecoterra website and connecting their software wallets.

Currently, 1 ECOTERRA costs $0.00925, but this price will increase to $0.01 in just over 21 days. It’s possible that the price could rise even higher once the altcoin lists on exchanges in the coming months. This could make ecoterra one of the most successful new cryptocurrencies of the year.

Visit ecoterra Here