A pseudonymous Cardano ($ADA) influencer called “ADA Whale” asserts that a crypto protocol may appear to be the ideal network due to its speed, minimal costs, excellent developer experience, etc. However, if the coin is not widely dispersed and protected by a sizable decentralized community, it might still be worthless.
A crypto protocol can seem a perfect network by being fast, low fees, great dev experience, etc. Yet its coin can still be worthless if they’re not well distributed + secured by a large decentralised community. Network ≠ digital economy and constraining supply ≠ natural demand
— ADA whale (@cardano_whale) December 26, 2022
The ADA Whale analyst further goes on to criticize weak networks saying that,
“networks have big announcement after big announcement of collabos, while bosses state they should be “obviously” in the top 3, all the while the chain is secured poorly and a 97% presale went to insiders. It’ll have its day and falter, warned you before.”
The twitter community, with many influential netizens also joined in on the conversation.
One user by the name Li₿εʁLiøη replied to the cardano Whale saying, “the blockchain that is born with significant amounts of its pre-mined crypto (higher than 20% of its supply), in the hands of its developers, it loses a degree of decentralization: it has concentration of its economy. Tokenomics is important to measure decentralization.”
Another user, Yabba900 pointed out that people lose interest in the basics of what a blockchain should be. According to the user, everyone prioritizes short-term advantages over security and decentralization.
Whereas, Adam Rusch tweeted he has considered nation-states and crypto protocols to come to a conclusion that power and resource decentralization has a significant influence on a society’s ability to succeed. The user also tweeted that “If a small group seizes control of everything, it leads to societal breakdown as nobody else has a reason to build anything that will last. At the same time, if there is no method for coordination and governance, then lawlessness will abound. It’s a hard balancing act.”
WingRiders joined the Twitter thread and agreed with ADA Whale’s statement. WingRiders added that there is “still lots of work to undergo for crypto for the brighter future.”
Finally, Vivek, “The DegenCreator,” emphasized the need for a decentralized community to protect the network. Blockchains will hold billions, if not trillions, of dollars, in the future. Millions of dollars have been lost because blockchains were not secured or turned off.