Cardano (ADA) Price Struggles as the Market Turns Bearish, Leaked Proposal for 200M ADA Tokens Sparks Outrage

ADA Price struggles along with the rest of the market, having dropped 4.5% over the last 24 hours. The total crypto market cap is also down 1.7%, as most traders have turned bearish, anticipating a further decline.

ADA price is struggling along with other markets, falling 4.5% in the last 24 hours. The total crypto market cap also fell by 1.7%, with many traders turning pessimistic in anticipation of further declines. Meanwhile, the Cardano community was up in arms when a leaked proposal revealed a demand for 200 million ADA tokens. Reactions were harsh as the incident added to the distress caused by the delayed Chang hard fork upgrade.

The Effect of 200 Million Cardano Demand on ADA Price

Discussion in the Crypto

The offer, leaked in the early morning hours of August 26, revealed that venture capital firm 3UTxO plans to demand the amount in question when Voltaire launches.

?CARDANO Back Room Grift ?200 Million ADA at stake ?note: It's not about me, It's about Us!?? pic.twitter.com/M3mndECDKC

— ESCO (@ESCOweb3) August 24, 2024

Jaromir Tesar, one of the most vocal ADA advocates, published a detailed statement that there is not enough ADA in the treasury to distribute 200 million coins for a single offering, even if Cardano becomes decentralized.

According to Santiment data, Cardano inflation rate has dropped to 0.42%, which is the lowest rate since June 6.

On the other hand, Cardano Founder Charles Hoskinson stated that they postponed the Cardano Chang hard fork upgrade to September 1 and needed more time to complete the necessary upgrades. If the offer had been approved without being noticed, it would have had a negative impact on the ADA price, and the price only fell due to the entire market pulling back.

Short Positions Are Increasing, Risk of Loss of 2 Billion Dollars

According to data from the Coinglass Liquidation Map (LM), futures traders have identified an opportunity to use short ADA. Currently, cumulative Short liquidity leverage is larger compared to longs. This imbalance indicates that the overall market is pessimistic about Cardano as traders expect the ADA price to drop lower.

A more in-depth analysis of LM shows a major sell wall (right side) at around $0.379, while the buy wall is decreasing on the left side.

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