Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Cardanos [ADA] The ecosystem has been busy and vibrant in recent months. This was also the case in December, when the network saw the highest developer activity in the past 30 days.
Although it has nothing to do with how ADA is doing on the price charts, there is high development. activity is a sign that a crypto project is committed to creating a working product and adding more features.
Like the rest of the cryptos in the market, ADA has also fallen significantly in the past few days. In fact, at the time of writing, it was valued at $0.523. This is despite a general wave of optimism among those in the market. Under these circumstances, it’s worth taking a look at what ChatGPT thinks about ADA’s prospects for 2024. This is especially relevant as Cardano has recently seen a positive increase in its funding rate.
Updates, updates and more updates
In the beginning, the Byron era laid the foundation for Cardano. It established the mainnet and introduced other fundamental tools. A federated network, dominated by Input Output Global and Emurgo, marked the beginning.
The Shelley era witnessed a hard fork in July 2020, with Cardano moving from centralized Byron rules to a decentralized setup.
The community stake pool managers took the reins and demonstrated Cardano’s commitment to decentralization.
The next Goguen era was gradually revealed. It spawned features such as Smart Contracts and dApps. The Goguen era occurred in three steps: the Allegra, Mary, and Alonzo eras.
The Allegra era introduced token lock support. The Mary Era pioneered native tokens and multi-asset functionality. The Alonzo Era enabled smart contract support, making Cardano a versatile platform for various applications.
The subsequent Basho era focused on scaling and optimization. Innovations include sidechains for improved network capacity and the introduction of parallel accounting styles, broadening use cases and interoperability.
The latest Voltaire era focuses on decentralized governance, giving the Cardano community the right to vote on network evolution, technical improvements, and financing decisions.
Price action of Cardano coins
Source: ADA/USD, TradingView
ADA was trading at $0.523 at the time of writing, with the crypto down more than 13% in a seven-day period. If the coin tests and crosses the support level now, ADA could soon reach early December levels.
The positioning of the Parabolic SAR’s dotted marks highlighted the bearishness within the market. On the contrary, the Chaikin Money Flow approached zero thanks to an upward trend. This meant that capital inflows were almost equal to capital outflows – a sign that a turnaround may soon come.
ChatGPT’s Opinion on ADA and the Ripple-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 predicts ADA performance
I asked ChatGPT what they thought Cardano’s price would be at the end of 2023.
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 climb higher.
Conclusion
Like many in the community, ChatGPT remains bullish on ADA’s prospects in 2024. While expectations for ADA to reach $10 are ambitious, you never know how true they will be. Especially in light of the volatility of the market. The best course of action is therefore to take these predictions with a grain of salt.
ChatGPT is a tool that allows people to trade and make strategic decisions. However, it is important to note that while investing in a market as volatile as the crypto space, traders should do their own research.