Mike Novogratz, the CEO of Galaxy Digital, has stated his surprise over Cardano’s valuation and went so far as to call the community a cult. According to Novogratz, Cardano’s valuation and development is questionable and considers it as a cult stating it is an incomplete network that is highly valued.
Cardano is the fifth-largest cryptocurrency which has a market cap just touching $50 billion, and is on par with Binance Coin (BNB). Being a high-speed blockchain, Cardano is known to have the highest number of ‘commits’ on GitHub in the previous week, yet some heavy investors remain skeptical of its performance.
Novogratz questioned Cardano’s valuation, according to him the Cardano blockchain network is half-completed and lacks any operational smart contracts, yet it is highly valued.
While Novogratz’s statement did raise a valid point, his accusation of calling the Cardano community a cult has raised significant disapproval from a large number of Cardano supporters. Even the CEO of IOG and the founder of Cardano, Charles Hoskinson responded to Novogratz’s statement by accusing him of bitterness.
According to Hoskinson’s accusation, Novovgratz’s bitterness towards Cardano is due to him not seeing an entry point to the blockchain network at a favorable price.
During a conversation with Zack Guzman, the anchor for Yahoo Finance, Novogratz sparked more controversy with a statement saying Cardano’s value is derived from the social construct and has reached its potential out of a brand name.
Hoskinson responded to Novogratz’s criticism, by stating the lack of smart contracts was a work in progress, and accusing IOG and Cardano of criminal actions is a step too far.
Hoskinson also stated that, unlike Ethereum, Cardano uses a steady ‘scientific method’ to counter system failures. Cardano tends to take a slow pace to ensure the system does not fail.