#112 - The Truth About Cardano - Transcripts

November 09, 2022

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Cardano is one of the industry's most divisive projects. People either love it, or they hate it. Today, we take a look behind the scenes of Cardano to reveal what is really going on. After a deep dive into their technology, real world use cases, partnerships, community, and road map, we finally land on a decision of whether $ADA deserves to be in portfolios moving forward.


this is the truth about Cardano

we're about to reveal some crazy facts about card at all the you don't know about

welcome to the bean pot this is your place for all things stocks and crypto from beginner tips to expert picks use this as fuel for your investing journey because when you're in the know your money will grow

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and safe user experience is copper swaps sole focus to make everyone's life better Indy five welcome to the bean pod this is Shane A. K. the jolly green investor

this is Josh the nifty investor

today we're going to be revealing the truth about Cardano

we're gonna reveal some crazy facts about Cardano that maybe you're not familiar with this is the number eight ranked crypto with a nineteen billion dollars market cap doesn't deserve it he what's under the hood here

yes so I mean look Cardano is it's a topic of discussion in the crypto world I feel like you either love it or you hate it now we're gonna take an unbiased approach as we always do in this truth about crypto series we're gonna talk about the technology the real world use case is the founder of the token omics everything about Cardano to make an informed decision whether it's going to be in our portfolio are not so make sure to watch this one until the end

and hit the like subscribe notifications on all that good stuff to help us get this video to the rest of our

viewers so Cardano is you know one of the O. G. Ethereum killers right


you know it's a proof of stake had gender Gen two Gen three blockchain I mean a proof of stake being the more sustainable and scalable version of the original bitcoin technology but here's the thing about Cardano and we have to address the first is what you said it has a large market cap it maybe hasn't seen the adoption right that's that's the first thing you always hear about so what we're not going to talk about why that's the case first I feel I do agree that that's kind of like they hit or miss like why is the market counselors if people aren't ravenous the using this for an F. T. like salon or theory

it's interesting right I was watching some interviews or trials before Charles Austin Hodgkinson who is he's the co founder of Ethereum who laughed and then started card I know to make this everything that the team is now trying to become you know proof of stake blockchain where Jamie was prefer work in the past


it's interesting right like right now in crypto there's not a ton of users per se like we're not the real world adoption from the crypto perspective we're seeing a lot of hype based place you know when the metaverse when Facebook announcer they can change the name to matter and enter the metaverse all the metaverse talking direct right it's not a lot of sexiness with Cardano to be driving the price so it's interesting I think it's a long term perspective right if you understand Charles in the way he thinks about it he's like because his approaches look ninety percent people are not using crypto yet there's still a long way off before we see mass adoption so we're gonna take our sweet time I'm gonna make sure that everything is correct


so I think people are almost looking for the long term vision of what Cardano can and will be you know you're not seeing any hacks you know they just there isn't a ton of you know fancy apps that you know we can allude to right now I can just say oh this is built on it like a pancake swap for finance right or BSE so there's not a ton of hype that's kind of driving that price but again I think what what caught what has caused this large market cap is the fact that people are looking to the future

right so it's maybe it's not necessarily a bad thing but I think it's something that makes us that's why we chose to do this episode because it's it's it's a very topical


crypto project a blockchain you hear about a lot there's a lot of debate going around so let's jump into the actual project in and talk about what it does so the first thing that jumps out is basically what you said the reasons can going so slow it is because and this is what they claim the first blockchain founded on peer reviewed research and develop the evidence based models that is Cardano so they're taking the slow and steady approach not deploying anything before and hasn't been peer reviewed before has been proven by evidence based models right so they're not building things and throwing them out there and having them get hacked and go down like salon and that's what they would argue right it's like okay we are reviewing these things peer reviewed using models making sure it's good before we actually rolled out to users so that's kind of one of the things that jumped out at me and it's different than Cardano about a lawyer projects

absolutely and


listening to him speak I can kind of see where the frustration comes in because a lot of these crypto prices will run and it's purely based off of momentum and hype where these guys are taking the time with the peer reviewed articles and no scholarly individuals from all around the world I think they have four hundred plus you know developers employ employees quote unquote across fifty different countries so they're they're bringing all this information right in trying to build this ecosystem that is can be long lasting it's here for the future and he alludes to the fact that governments are good at day care about consistency security you know all these things that really matter and what they're going after is the developing nations when you start to dig into a lot of their their jobs are being built they're trying to bring defy to these communities that are unbanked you know because there's three billion plus people around the globe right now we don't have access to financial institutions so you need to have all this in place if you're gonna bring on where they're targeting like in Africa for example you need to ensure that this thing is superior

to the rest of the

technologies that are out there because you're gonna have these individuals doing peer to peer banking without a banked right sold right it has to be perfect

right so when you go into the use cases section of their website I'm so basically what you're talking about there so this is what they less there's education you can use a card on offer academic certificates retail anti counterfeit agriculture for supply chain for anti counterfeit governments for ID issuing and verifiability finance for KYC on boarding you can see the the trend here it's all about like verifying ID's healthcare anti counterfeit medications I mean I says the World Health Organization estimates that fifty percent of all medications sold online could be fake so it's all about our genesis to be targeting at least for the moment verifying things making sure they're real and stuff like that


however all of these things link back to just basically one product that's come out of Cardano what's called the Ayatollah prism ID technology so it's this one thing is this ID technology that they're just extrapolating these use cases out of and the only real the only real world case study that I found is that with the Ethiopian ministry of education right

what's currently actually being used presently harassed

correct so it's nice that they have all these potential use cases but for a more a queen with a market cap of how how big twenty billion twenty billion you would maybe want to see a little bit more real world adoption


and another red flag for me is that a lot of the links were broken on the website

who that's not good

the official card on a website you know what you click on something as light air breezy to another website I'll page removed as like okay for you know I'm looking at I I small cap gem and it's a ten million dollar market cap okay the website maybe isn't perfect


but Hey man I'm on the card on a website I want things to be working perfectly you're talking about top ten project here what's going on

I know

there is

I thought was that the I. O. H. K. I was on that website and all the articles are from like twenty twenty


I guess I stay up to date with Cardin on everything that we're developing and some the last article I could find on there like from twenty twenty one so why why is there no more updates


on that went on like their number one partner

is not great it's not a good look


not a good luck so already we're seeing okay I think we can agree that I like the food the dot potential use case


although it is just one potential use cases

they do also have the you mentioned the one pride that you have a Talisker and and a tallit trace right well

okay so it's all kind of it's all the

you know it's all similar stuff that every blockchain is attempting to do you know so a tall prism I found that education immutable tamper proof certifications is really important job seekers so you can forward your resume and then get into the a job is I all this guy really can do is is get it right they have a telescope and this is something that we alluded to in previous episodes our ties into the blockchain so you can figure out if the product is actually real not wasn't manufactured in the right location like they said and then they have a taller trace which is tracking like our fruit and vegetable the organics ours are gaining or not was just getting a label put on it and they do have these things yes and but to your point there is a couple red flags specifically to why not stay up to date on their website which is the number one place I was gonna go to research

yeah I mean if you're looking for a supply chain going you might as well just get more VS


if you have tiny market cap

partner with FedEx and


yeah yeah

look it's nice to see that they have a vision for their project and when you take into the actual technology to have that Cardano it's called oral boroughs so that's that's you know every every blockchain has like their own version of scaling and charting and you know near protocol with the sharding Cardano has or a borough switch processes transaction blocked by dividing chains into the box


which are further divided into two time slots and you hear about different blockchains it's they'll kind of solve this problem in different ways you know I poke it out with that with chains and then it's all about scalability so that's the way the Cardano is doing it and I see they have their own proprietary technology which will help with scalability I'm but going back to the adoption so if you're going to doppler radar it shows all the different apps on every major causes them and how many users are you guys making news I'm not sure if you saw that the central and thing yes I like Edward eight members is forty users or something


so I was on there the other day and I saw that there's


taps on Cardano that have over one hundred active users


that that's not great so JPEG store which is the cut main Cardano and if you market place has fort that's their top top right four thousand active users compared to open sea which is twenty K. and magic even for salon which is thirty six K.


and then minutes swap which is the Cardano Jax has one thousand active users you swap twenty K. radium five K.


so it's it's obviously well behind and you have later ones with a lot smaller market caps like avalanche because most and I'll grant which have jobs that have a lot more active users on their main applications that are cut down at once so again for me it's just like okay why is the market cap so big if there's no one using this and I I get the slow play I get that button what are people are just betting on you know the ideas execution in business is the hardest thing it's nice to have ideas but the market cap is so big

it should be a your say like I should be like you know have had their house got for example said in a one point five billion dollar market cap why is this one is ten times hi there is market cap which is insane because you know how there is currently working at LG Boeing Google Google cloud better right so there's a lot more going on

it's interesting there is actually a decent parallel to Cardano not in market cap because this ten or whatever times

yes one has less

but there are many users aren't there either because they either haven't actually launch their products

that's right

but I think the market cap reflects that


where is the problem for me with Cardano is that the market cap doesn't reflect the fact that Cardano has not gotten out of the option yet and I get it you believe in the founder you believe the technology and all the you know the Ethiopian ministry of education case study as of right now can I rock but well I just I'm having a hard time getting over the fact that yes I I see the technology but the market cap to me just doesn't line up so late we left let's dig into this further maybe there's more into all the reason I bring this up to is because

any amount one of our listeners anybody who gets involved in cryptos typically trying to make money on their investments the the reason chain is bringing this up right now in terms of market cap is typically a lower market cap you know if you can find a bigger project that has a ton of users a ton of growth the talent development like for example we had not on the founder D. so the decentralized social media blockchain at a later one super low fees their onboarding like six thousand to ten thousand people a month daily active users every single month like there has trying to have millions of people on this platform that has a two hundred million dollar market cap so when you're trying to grow your money which is you know what we try to do on this podcast is find really good projects you're not gonna get it at five X. or four X. or ten X. of cardinal anytime soon but you can find them with something that has like a five hundred million dollar market cap that is seeing serious growth yeah I so that's why we're speaking to the market copier Cardano

although it's it's funny you mention about the market cap and growing comes gonna pull it up right now my computer real quick Cardano has been nuking lately like going down more than most other altcoins it's below every support that I can identify the chart it down all the way to thirty seven cents like that is a fire sale for all things considered from it was that you know three box


it's down ninety seven percent right so like maybe it is cheap I don't know but

so okay well it a couple things I could speak to then that might ease the investors of cardinal one is one thing I like about the technology is they do operate so as to compel compatibility aspect so they do sometimes when you know when the three made its change from POW to POS and you know some of the different Ethereum called ERC twenty tokens weren't working properly and you have to go into these websites one not so you can lose compatibility the good thing about with Cardano is that with every time they make an upgrade you can still use the previous stops from the fork that just occurred right thought a managing like you can still use windows seven apps all windows eight so that's a great thing you still go back in time right and utilize all doubts within the ecosystem that's one thing I think makes quite a special

for sure all right well let's move on to another interesting topic that we always like to bring up on these truth about crypto series is the founder so it Charles Hoskinson as you already mentioned he was a co founder of Ethereum he was one of the original five founders with metallic pewter in in twenty thirteen for Ethereum now that's how Peter in and the at the U. M. team removed Hoskinson in twenty fourteen because there is a disagreement Charles wanted to make a commercial for profit if you tell said no it needs to be not for profit for it to be truly for the people that was the main disagreements and then Charles left credit card on now there's a lot of things that have come out about Charles over the past year and a bet that of maybe I don't know if I was a not trust him

but are

we look for red flags in founders and teams right and so when you see it see that he's claimed he had entered a PhD program dropped out at a university that does not have that program and that they verified that he attended as a half time undergraduate math major but did not earn a degree he then claimed to repeatedly have worked for the defense advanced or DARPA and then DARPA said he had not he continually bashes other projects it doesn't seem like he's trying to bring the crypto community together which is what we like


he seems like a very yeah conflicting kind of guy so for me it's it's not the kind of person I want to invest my money in

two things there maybe they should introduce a dollar prism

on Charles himself yeah yeah

to prove where you it does the job that he's he's like

Hey here use your own technology


I can no it's true

over and the other thing is I think his his his vision is so a lot like he's looking to wait out okay baby K. he's a developer right a lot of computer guys are not necessary the most they're all the same communication skills that maybe a sales guy has or you know if our front of house work at a restaurant so he has one plus one equals two I want to do is and why he just can't communicate it effectively or efficiently to the people who he's trying to commit this idea too so I can see how become he becomes very defensive and with him having such a long term view on his project and he's in it for the next twenty years right I can see him being frustrated when he sees other projects that are garbage like Solana for example when you see of that coin repping he's like this thing is


and his token price is just going down and down and down I can see the frustration how and you know it without I believe Cardenas a little bit of a cult following when you're viewing and watching your leader if you will verbalize the way he does too yup that different crypto communities comrades off on the community and that creates like this toxic environment he

yeah but I I I just don't trust them I mean he's lying about where you went to school he's lying about his job past what else is he lying about yeah exactly what's going on the back of the card I know that he's not telling us yeah you know you lose my trust as an investor it's very hard to bring it back

especially when there's you know four thousand other coins that you could invest in

exactly so let's maybe flip the bill little bit and talk about what's been going on lately so they they just did their hard fork so the technology is being upgraded hi drought layer two solution which will make Cardano even more scalable who is in the works they have a massive community over three point five million across social media end apparently hold on a few trusted there is over one thousand open source projects building on Cardano

right it's

actually one of the most popular communities for developers on get help which is like the code the code platform so there are a lot of people building on it and there are a lot of things happening in the background but there's just a lot of real world adoption

right so

it just depends on I guess your your time frame for investor because I'm not gonna sit here and say this is a completely trashed project that has no future because they do are they're going after some interesting areas that blockchain can provide technology for solutions the government the ID the verification that all that kind of stuff I like that but it's very speculative at this point with the market cap especially the

at the speed at which they like to develop you know it might pay off in the long run if you know the whole blockchain world of Warcraft world but right now it's not and I think you're gonna start to lose people because it's gonna be frustrated over the speed at which the job to get it done many others it's a fine line between getting everything right but also getting out the door

yeah I feel like god I almost feel like Kevin o'leary on shark tank and it's like a business comes that the technology is interesting but David the founder is asking for evaluation for investment that is just ridiculous I I will offer you ten percent for a hundred million and he because I have a selfie out exactly how many sales job no zero get **** that's kind of how I look at when I see Cardano flashing their blind it's like buy me buy me a like no no no no sales no by

my favorite all going to short

eighty eight thousand pretty good lately so I don't know is there anything else that you've uncovered about cut down on that can be flipped my opinion

one thing I like I know not you've planted the seed of lack of trust it's tough for me to believe anything they say is it even I do like the fact that there's a lack of venture capitalists behind Cardano subject the reason he claims

that there's

a lack of venture capitalists behind is because he wants fair distribution of the ADA coin and venture capitalists they always want okay when can I get in how can I get out how much money am I going to make Wednesday on lock they didn't have all that so that so because they try to make it a fair there's not a venture cop was behind it right so I do like that aspect and I do want by I found will be the bean pod or being stopped at a couple small cap gems

if you look at again to cut out a check on the

these are two projects built our garden okay yeah and I think they're worth noting

all right

I'm the first one is the world mobile token basically it's trying to connect three billion unconnected individuals over in the developing nations is struck B. like a peer to peer transfer might think maybe things like a telco line if you will okay so you can connect to these things called err nodes so you're creating like a telecommunication services amongst all the individuals I guess I get internet of things in a way and the other one was a car because I think it's if I may pronounces Franz review to rip Revolut total access subscription management so it's pretty neat so as long as you own one the F. T.'s river to will pay for your subscriptions for Spotify Netflix stuff like that

that is pretty neat

yeah some I already told her T. they pay for your subscriptions and the neat thing is it's all your because my visit my visa card got hacked the other day so I can I can use my visa card for like five days or some like that I try to get all these emails about your subscription your subscription of like five different I've had that thing with this you have all your subscriptions one place you can I just control box and like cancel it adds it like thirty seventy one spot but also by hold unity you can pay your subscription so cool either kind eight hundred side I would check out

for sure so in conclusion I think the red flags in the Cardano ecosystem the founder their lack of execution you know in business in anything execution is the hardest thing you can make plans and technology and potential real world use cases you can pull those out out of thin air but when it comes to execution I'm not sold on cut down on the market cap is too big for me I'm not saying it's not gonna pop you know it's one of the names everyone knows it's on every exchange when crypto comes back eventually I'm sure it'll pop because the whole market will pop but for me for a long term blockchain is gonna give me a good risk to reward ratio return on my investment I'm out because the market has to offer me

I should set off from a market cap perspective in the short term short to mid term I'd also take the exact same philosophy and won't be putting any money into cardinal because there are like like we said there's a lot that we've alluded to other later ones that are doing a lot of the exact same things but we're also seeing the adoption Yom Yom cell

that's that's pretty much it I mean like look for everyone is watching this episode right now if you've watched to the end let us know what projects you want us to do a truth about coverage on we're always looking for your favorite project we want to uncover the truth about the project that you want to hear about some comment them below and we'll get it done

and let us know anything we missed in this episode about cardinal because there's a lot of smart people who are watching these episodes you might be the telegram group or you know might have heard from them that we haven't caught on to and we like to keep educating ourselves well you guys are filled with a ton of information so let us know in the comments as well and then if you turn to the next episode

I was going to be a banger

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