Key Takeaways:
- Charles Hoskinson, founder of Cardano, stated the US needs new system for crypto regulation.
- Furthermore, he believes that Metaverse would be beneficial for cryptocurrency.
- Cardano’s native token, ADA, rose 7.3% on Friday.
NEW DELHI (CoinChapter.com) — Cardano (ADA) creator Charles Hoskinson believes the US needs to create a new regulatory system for cryptocurrencies.
In an interview with Tony Edward on the Thinking Crypto podcast, the Cardano chief shared his views on crypto regulations and the Metaverse. In detail, Metaverse refers to a digital world that exists beyond our analog world.
On the topic of Metaverse, the Ethereum co-founder noted the evolution of interfaces and how we have moved from screens to VR goggles. He also highlighted the evolution of the internet, moving from the “original internet,” which was interacting with static websites, to Web 2.0, which includes social media and mobile computing.
The Cardano founder further added that in Web 3.0, websites would have AI support to give them context.
Mr. Hoskinson then noted that Oculus Rift and HTC Vive are already available in the market, with Apple likely to launch its AR (Augmented Reality) glasses by 2025. The Cardano chief also predicted that Samsung would likely follow suit, which would bring the AR and VR (Virtual Reality) revolution.
Also Read: Cardano eyes 36% breakout as ADA prints bullish technical formation.
Mr. Hoskinson emphasized that advancements in AI and interface indicate that Web 3.0 is a vertical layer. He also highlighted that with Metaverse, understanding complex concepts like non-Euclidean geometry would become accessible to everyday people.
By using NFTs to represent ownership of virtual assets in the Metaverse, developers intend to expand beyond gaming into fields like fashion, architecture, etc. In addition, it would help build a blockchain-based Metaverse that could serve as a community-driven marketplace for developers and creators.
“You Need A Different Regulatory System,” Says Cardano Chief Hoskinson
Mr. Hoskinson also shared his views on crypto regulations in the US. The Cardano creator believes the US needs a new system based on the function of an asset “instead of a definitional system.”
He further said that the finance world has evolved beyond traditional definitions of when something is a commodity, currency, or security.
The Cardano chief believes the problem in the current regulations is that there is a regulatory body for an asset type. For example, the SEC handles securities, and the CFTC regulates commodities.
We’ve moved beyond the world that something’s a commodity and something’s the currency and something’s a security. It needs to be regulated based on how it’s used. You need a different regulatory system and that doesn’t really map so well in the US
Cardano chief Charles Hoskinson on regulatory status in the US
Mr. Hoskinson emphasized the need for regulations based on better definitions of assets. He highlighted the lack of clarity on what is a security token v/s what is a utility token. The Cardano creator stated that a better functional model and a better asset definitional model working together would create an ideal regulatory model.
Cardano (ADA) Price Charts
Cardano’s native token, ADA, is down 8.7% in the current week. In addition, the Cardano token prices failed ended both Sept (-23.62%) and Oct (-7%) in a downtrend. ADA’s price action in Nov has been disappointing for bulls. The Cardano token has lost 29.52% in Nov between high ($2.40) to low ($1.69) levels.
Although cryptocurrencies often react to positive news, ADA prices failed to take advantage of recent Cardano news and updates. For example, ADA prices gained a mere 0.01% on Nov 18 when news Bitstamp announced listing ADA trading pairs on its platform.
As per the announcement, Bitstamp has listed ADA/BTC, ADA/EUR, and ADA/USD trading pairs. However, Cardano ADA’s price action remained relatively unresponsive, highlighting the strength of ADA’s current bear run.
Also Read: Cardano bull pennant eyes 70% ADA price breakout.
At present, Cardano(ADA) is bearish across all time horizons, as it trades below its 50-day and 200-day moving average trendlines. However, Cardano(ADA) prices jumped 10.27% on Nov 19, going from the day’s low of $1.722 to reach a high of $1.899 before prices pared.
At present, ADA has immediate resistance near its 200-day MA line at $1.905. However, if Friday’s momentum carries forward, the Cardano crypto could challenge resistance at $1.992 next. In addition, a sustained buying pressure would see ADA move towards the $2.11 price level, near its 50-day MA line, before pullback occurs.
On the other hand, ADA has support at $1.71. The Cardano token’s prices have not gone below $1.71 since Aug 11. If Nov 19’s uptrend fails, ADA prices could move to $1.63 before recovering. However, a downtrend would likely spark panic, leading to further sell-off, which could bring the support at $1.55 into action.
Furthermore, ADA’s MACD continues to be bearish. However, bars on the MACD histogram seem to be decreasing in height, indicating the MACD line (difference between 12-day and 26-day) might be moving upwards towards its signal line (9-day EMA of MACD).
Once the MACD Line moves above the MACD signal line, it would indicate a trend reversal in favor of the bulls.
At the time of writing, ADA was trading at $1.871, up 4.55% on the day.
