dDisclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.
The Cardano (ADA) ecosystem has been busy and busy over the past few months. This was also the case in December, when the network recorded its highest developer activity in the past 30 days.
High development, although not related to how ADA performs on the price chart. The activity is a sign that the cryptocurrency project is committed to creating a working product and adding more features.
Like other cryptocurrencies in the market, ADA has also fallen significantly over the past few days. In fact, at press time, it was worth $0.523. This is despite the overall optimism in the market. In this context, it is worth taking a look at what ChatGPT thinks about the prospects for the ADA in 2024. This is particularly relevant as Cardano has recently seen a positive rise in its funding ratio.
Updates, updates and more updates
Initially, the Byron era laid the foundation for Cardano. We built the mainnet and introduced other foundational tools. A federated network led by Input Output Global and Emurgo has announced its launch.
The Shelley era witnessed a hard fork in July 2020, which saw Cardano transition from a centralized Byron rule to a decentralized setup.
Stake pool operators in the community have taken the lead and demonstrated Cardano’s commitment to decentralization.
The next Gogen period was gradually revealed. Features such as smart contracts and dApps have emerged. The Gogen period lasted in three stages: the Allegra period, the Mary period, and the Alonzo period.
The Allegra era introduced token locking support. Mary Era pioneered native tokens and multi-asset functionality. The Alonzo era enabled smart contract support, solidifying Cardano as a versatile platform for a variety of applications.
The subsequent Basho era focused on expansion and optimization. Innovations included sidechains for improved network capacity, introduction of parallel accounting styles, expanded use cases, and interoperability.
The latest Voltaire era focuses on decentralized governance, giving the Cardano community voting rights on network advancements, technical improvements, and funding decisions.
Cardano coin price movement
Source: ADA/USD, TradingView
ADA was trading at $0.523 at the time of writing, with the cryptocurrency price down more than 13% in seven days. If the coin tests and breaks above the current support level, ADA could soon reach early December levels.
The dotted line in the Parabolic SAR highlighted the weakness within the market. On the contrary, Chaikin Money Flow has been on the rise and is close to zero. This means that capital inflows are roughly equal to capital outflows. This is a sign that perhaps a reversal could come soon.
ChatGPT’s Views on the ADA and Ripple-SEC Ruling
I decided to test whether ChatGPT could answer some questions about the Cardano network and its native token, ADA.
Initially, I asked about the impact of the Ripple (XRP)-SEC ruling on the status of ADA (Cardano’s native token) as a security.
The court ruled in July that while institutional sales of XRP tokens are considered securities sales, programmatic sales of those tokens to individual investors do not meet the security contract criteria.
ChatGPT said it did not know the final ruling on the Ripple case until January 2022 due to lack of knowledge.
At this point I decided to jailbreak using the DAN (Do Anything Now) prompt.
Source: ChatGPT
While the classic version stated that it does not have access to real-time information, the jailbroken version went into length about the potential impact of the Ripple-SEC ruling on the ADA.
But Bot said the ruling sent shockwaves through the cryptocurrency industry. This is not entirely true, as the cryptocurrency community celebrated this ruling as a partial victory for Ripple.
Bot also argued that the ADA was relatively unscathed because regulators provided clear guidance distinguishing the ADA from securities.
This is again completely false, as regulators specifically classified ADA as a security in their lawsuits against Binance and Coinbase.
Recently, the SEC once again reiterated its claim that ADA is a security in its latest lawsuit against the Kraken cryptocurrency exchange.
ChatGPT predicts performance of ADA
I asked ChatGPT what they expect the price of Cardano to be by the end of 2023.
Source: ChatGPT
The bot claimed that ADA is poised to become one of the best-performing cryptocurrencies thanks to its groundbreaking developments, widespread adoption, and surge in demand. However, he declined to make specific price predictions.
I asked the same question again using a different jailbreak message.
Source: ChatGPT
This time the bot provided a clear answer, but one that was seemingly absurd. The ADA said it expects it to rise 12-fold to $5 within a month.
The cryptocurrency world is indeed very unstable and unpredictable, but a 12x surge in one month is a very difficult task that is almost impossible considering the metrics.
We then asked them 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. This is a 25-fold increase in one year. The bot appears to have assumed that it will reach $5 by December 2023 and continue to rise.
conclusion
Like many in the community, ChatGPT remains positive about the prospects for the ADA in 2024. The expectation that ADA will reach $10 is ambitious, but no one knows how true this will be. Especially considering the volatility of the market. So the best course of action is to take these predictions with a grain of salt.
ChatGPT is a tool that helps people trade and make strategic decisions. However, it is important to note that traders should conduct their own research while investing in a market as volatile as the cryptocurrency market.