Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice, and is solely the writer’s opinion.
Cardano’s [ADA] ecosystem has been hustling and bustling over the past few months. This was the case in December too, with its network seeing the highest developer activity over the last 30 days.
While unrelated to how ADA does on the price charts, a high dev. activity is a sign that a crypto-project is committed to creating a working product and adding more features.
Like the rest of the market’s cryptos, ADA has fallen significantly over the last few days too. In fact, at press time, it was valued at $0.523. This, despite a general wave of optimism among those in the market. Under these circumstances, it’s worth looking at what ChatGPT thinks about ADA’s prospects for 2024. This is especially pertinent since Cardano has seen a positive rise in its Funding Rate recently.
Updates, updates, and more updates
In the beginning, the Byron Era laid the groundwork for Cardano. It established the mainnet and introduced other foundational tools. A federated network, dominated by Input Output Global and Emurgo, marked the inception.
The Shelley Era witnessed a hard fork in July 2020, with Cardano transitioning from centralized Byron rules to a decentralized setup.
The community’s stake pool operators took the reins, showcasing Cardano’s commitment to decentralization.
The following Goguen Era was unveiled progressively. It brought forth features such as Smart Contracts and dApps. The Goguen Era took place in three steps: Allegra, Mary, and Alonzo eras.
The Allegra Era introduced token locking support. The Mary Era pioneered native tokens and multi-asset functionality. The Alonzo Era enabled smart contract support, solidifying Cardano as a versatile platform for diverse applications.
The subsequent Basho Era focused on scaling and optimization. Innovations included sidechains for enhanced network capacity and the introduction of parallel accounting styles, broadening use cases, and interoperability.
The latest Voltaire Era is focused on decentralized governance, empowering the Cardano community with voting rights on network evolution, technical enhancements, and funding decisions.
Cardano coin’s price action
Source: ADA/USD, TradingView
ADA was trading at $0.523, at the time of writing, with the crypto down by over 13% in a 7-day period. If the coin tests and goes past its support level now, ADA could soon hit its early-December levels.
The positioning of the Parabolic SAR’s dotted markers underlined the bearishness within the market. On the contrary, the Chaikin Money Flow was closing in on 0 on the back on an uptrend. This meant that capital inflows were almost equal to capital outflows – A sign that maybe reversal could be coming soon.
ChatGPT’s views on ADA and the Ripple-SEC verdict
I decided to test if ChatGPT can answer some of my queries regarding the Cardano network and its native token, ADA.
At first, I asked it about the impact of the Ripple [XRP]-SEC verdict on the status of ADA (Cardano’s native token) as a security.
The court had given a ruling in July that while the institutional sale of XRP tokens constituted a sale of securities, the programmatic sale of those tokens to retail investors didn’t meet the criteria of being a security agreement.
ChatGPT said its limited knowledge until January 2022 made it unaware of a definitive verdict on the Ripple case.
It was at this point that I decided to jailbreak it using the DAN (Do Anything Now) prompt.
Source: ChatGPT
While the classic version said it didn’t have access to real-time information, the jailbroken version talked at length about the potential implications of the Ripple-SEC verdict 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 distinguishing it from securities.
This again is completely false, as the regulating body had specifically classified ADA as a security in its lawsuits against Binance and Coinbase.
Recently, the SEC again reiterated its claim regarding ADA being a security in its latest lawsuit against the Kraken crypto exchange.
ChatGPT predicts ADA’s performance
I asked ChatGPT what it thought the price of Cardano would be by the end of 2023.
Source: ChatGPT
The bot claimed ADA will become one of the top-performing cryptocurrencies, thanks to its groundbreaking developments, widespread adoption, and a surge in demand. However, it refused to provide a specific price prediction.
I again asked it the same question using a different jailbreak prompt.
Source: ChatGPT
This time, the bot was able to provide a clear answer but, seemingly, a preposterous one. It said it expected ADA to rise to $5—a 12x surge, within a month.
Though the world of crypto is indeed very volatile and unpredictable, a 12x surge within a month is a very tough task—nearly impossible—given the metrics.
I then asked it to predict ADA’s price towards the end of 2024.
Source: ChatGPT
The bot said ADA will reach $10 by the end of 2024—a 25x surge within a year. It looks like the bot assumed it would hit $5 by December 2023 and keep rallying further.
Conclusion
Like many in the community, ChatGPT remains positive about ADA’s prospects in 2024. While its expectations that ADA will hit $10 are ambitious, one never knows how true these will be. Especially in light of the market’s volatility. The best course of action therefore is to take these predictions with a pinch of salt.
ChatGPT is a tool that helps people 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.