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Mike Novogratz accepts a call with Hoskinson on why Cardano is not overvalued

  • Novogratz accepts a call from Cardano inventor Charles Hoskinson to prove him wrong about Cardano (ADA).
  • The CEO of Galaxy Digital reiterated that the current market cap of Cardano (ADA) is way too high.

Earlier this week, Mike Novogratz posted a tweet that caused a stir in the crypto and Cardano community. Novogratz, one of the most prominent bitcoin bulls and CEO of Galaxy Digital, whose assets under management reached $1.2 billion at the end of February, questioned Cardano’s use cases and why ADA has the fifth highest market cap in the crypto market.

Last question before I go shower, can anyone make a real bull case for $ADA? Does anyone build on it? Use it? Why is market cap so high? Should it be a funding asset? It’s one of the few cryptos I haven’t traded in my life.

The tweet received a large amount of responses, mostly from Cardano enthusiasts who wanted to convince Novogratz about the project. Some speculated that the popular entrepreneur is considering investing in Cardano (ADA), just as he invested in Cardano’s archrival Ethereum (ETH) years ago.

IOG CEO Charles Hoskinson also responded to the tweet, offering Novogratz a conversation to convince him of Cardano’s advantages and use cases. Hoskinson wrote, Happy to have a call Mike”.

Mike Novogratz accepts Hoskinson’s offer

In a tweet yesterday, Novogratz accepted the offer to be convinced otherwise that Cardano (ADA) does not have a “bull case.” At the same time, he reiterated that Cardano (ADA)’s current market capitalization is far too high. Mike Novogratz wrote:

Really appreciate the engagement on this question.Maybe the most I’ve ever gotten on a question. I am bearish but will do a call with @IOHK_Charles next week. Maybe he can convince me that I’m wrong. Just seems to much market cap for the amount of engagement.I keep it simple.

Aside from that, Hoskinson addressed Cardano’s critics in a tweet, which have grown louder in recent weeks after some announcements, such as the “world’s largest” blockchain deployment in Ethiopia, and a presumed listing on a major exchange (Coinbase?) were delayed.

Hoskinson pointed out that Cardano is a long-term project and tweeted, “It amazes me the short term thinking and lack of vision and understanding that some people have. Take a chill pill kids. Ship is fine.”

Cardano (ADA) price loses upwind momentum

Meanwhile, the Cardano (ADA) course has also lost some traction in recent days. After being one of the best performing top cryptocurrencies in the weeks prior, ADA’s price performance is currently rather lethargic. As a result, ADA has again lost the third and fourth position by market capital to Binance Coin (BNB) and Tether (USDT).

However, as analyst Michaël van de Poppe recently noted, “Still; very natural to have a calm period after a massive impulse move.” At press time, ADA was trading at $1.07, down 8.5% over the last 7 days.

About Author

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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