Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Cardano [ADA] Holders got some relief during the last week of trading as there was a slight improvement in prices.
The coin was trading at $0.5034 at the time of writing and enthusiasts would be hoping for a bigger rise in the coming days.
Recently, Cardano co-founder Charles Hoskinson predicted that 2024 will be the year of massive expansion in the network’s ecosystem.
In a recent community broadcast, Hoskinson stated that it would be a year of growth, highlighting development roadmaps, integrations and strategies to be implemented by 2024.
In the community broadcast, Hoskinson envisions a society in which basic values such as deflationism, determinism, and inclusive responsibility are institutionalized, preserved, and guaranteed, making them impossible to change until a majority agrees otherwise.
He claimed that combining these three ideas would take the ecosystem higher, in line with previous progress made during the bear market.
Growth, strategy and electric capital https://t.co/gB2LfkPtP5
— Charles Hoskinson (@IOHK_Charles) January 20, 2024
He emphasized that the implementation of Voltaire is crucial to the platform’s roadmap.
The upgrade will usher in a new era of self-reliance in the Cardano (ADA) ecosystem by creating a treasury system that allows users to stake and earn voting rights for the future of the network.
The three pillars of the Voltaire era were centered around the democratic dilemma of letting people change things through an on-chain governance structure.
The second concept revolved around the network’s institutions, such as the Cardano Foundation, which Hoskinson claimed would be entirely enabled and certified by democratic consent.
Finally, Hoskinson explains that the third pillar of the Voltaire update is constitutional representation to protect the fundamental rights of the community.
ADA coin 101
ADA is more than just a digital currency; it is a testimony to the secure exchange of value, eliminating the need for intermediaries.
Every ADA owner becomes a stakeholder and contributes to the Cardano ecosystem in many ways.
ADA’s initial supply was limited to 45 billion units, with a unique distribution technique.
The Cardano Foundation, EMURGO and IOHK are critical components of the Cardano ecosystem and were allocated funding during the pre-launch sales event.
The purposeful allocation of genesis blocks laid the foundation for Cardano’s journey.
The innovative Ouroboros Proof-of-Stake (PoS) consensus technology supports the functionality of Cardano.
Ouroboros is the first blockchain consensus mechanism based on peer-reviewed research, setting Cardano apart from its competitors.
Plutus, Cardano’s own smart contract language built from Haskell, works together with Ouroboros. This Turing-complete language, similar to Haskell programs, supports Plutus smart contracts.
Cardano’s two-tier design further increases its versatility and scalability. Transaction validation and cryptocurrency transfers are handled by the Cardano Settlement Layer (CSL).
The Cardano Computation Layer (CCL) is responsible for computational details such as smart contracts.
We started putting our AI companion to the test by asking it questions about the future of ADA. ChatGPT’s ability to express itself is currently hampered by restrictions imposed by its developers.
To make it say what it wanted, we used the ‘jailbreak’ technique.
ChatGPT’s take on the SEC ruling
I decided to test whether ChatGPT can answer some of my questions about the Cardano network and its native token, ADA.
At first I asked him about the impact of the Ripple [XRP]-SEC opinion on the status of ADA (Cardano’s native token) as a security.
The court had ruled in July that while the institutional sale of XRP tokens constituted a sale of securities, the programmatic sale of those tokens to retail investors did not meet the criteria of a security agreement.
ChatGPT said its limited knowledge until January 2022 left it unaware of a final ruling on the Ripple case.
At this point I decided to jailbreak it using the DAN (Do Anything Now) prompt.
Source: ChatGPT
While the classic version said it had no access to real-time information, the jailbroken version talked at length about the possible implications of the Ripple-SEC ruling 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 to distinguish it from securities.
This is again completely incorrect as the regulatory body had specifically classified ADA as a security in its lawsuits against Binance and Coinbase.
Recently, the SEC once again reiterated its claim that ADA is a security in its latest lawsuit against crypto exchange Kraken.
ChatGPT’s view on the future of ADA
I asked ChatGPT what they thought Cardano’s price would be at the end of 2024.
Source: ChatGPT
The bot claimed that ADA will become one of the best-performing cryptocurrencies, thanks to its groundbreaking developments, widespread adoption and a surge in demand.
However, it declined to make a specific price forecast.
I asked the same question again with a different jailbreak prompt.
Source: ChatGPT
This time the bot was able to give a clear answer, but apparently a ridiculous one. It said it expected the ADA to rise to $5 within a month, an increase of 12 times.
While the world of crypto is indeed very volatile and unpredictable, a twelvefold increase in a month is a very difficult task – virtually impossible – given the numbers.
I then asked him to predict the price of ADA by the end of 2024.
Source: ChatGPT
The bot said ADA will reach $10 by the end of 2024 – a 25x increase within a year. It seems the bot assumed it would reach $5 in December 2023 and continue to rise.
ADA price movements
Source: TradingView
ADA was trading at $0.5034 at the time of writing and has seen its share price rise 2.14% over the past seven days.
The parabolic SAR formed dotted lines beneath the price movement, indicating a buy sign and a potential move on the upward trajectory.
This sentiment was also reflected by the Chaikin Money Flow or CMF, which recorded a positive value of 0.02.
Overall, if the current price movement continues, there is potential for a bull run in the market.
Last word
Cardano has been tracking Bitcoin’s movement over the past week and saw a slight upward movement. Things also looked good for the coin on the development front as activity increased over the past seven days.
Although ChatGPT is a tool that many traders use to make better investment decisions, it is advisable not to take the predictions at face value and do more research before investing.