One of the main arguments in favor of adopting Cardano now is that it could one day usurp the position Ethereum (CCC:ETH-USD) holds.
So, you can be sure that Cardano is eager to seize upon any headlines that reinforce that idea. And that’s exactly what it recently did.
MonoX Finance is a blockchain firm which very recently suffered a hack into its blockchain. That hack cost the firm $31 million.
This is relevant to Cardano as it may have innate advantages over Ethereum. That’s because the $31 million in stolen tokens was housed on the Ethereum and Polygon (CCC:MATIC-USD) blockchains. MonoX Finance said that the hacker was able to leverage a bug in the systems accounting software, inflate its price, and then cash out the deposited tokens.
Cardano has gained notoriety for its supposed advantages over Ethereum. Charles Hoskinson, the co-founder of both Ethereum and Cardano, wasted no time to imply that such a breach wouldn’t have happened on Cardano’s Plutus smart contracts platform, saying, “This is exactly why Plutus was written for Cardano. Good languages and tooling [work] with the developer and auditor enabling them to write great and secure code. Bad languages load and hand them the gun that they shoot themselves with.”
For those really interested in the Cardano/Ethereum slant, the majority of the $31 million was $18.2 million of wrapped Ethereum.
I’m sure someone will accuse Hoskinson of victim shaming MonoX Finance and Ethereum, but frankly, he should. It is clearly in the interest of his firm. In fact, ADA shot up 15% in the wake of the news. That should direct some attention toward projects built upon Cardano’s Plutus smart contracts blockchain.
Flickto is one such project likely to receive attention based on that idea. It is a funding project for content creators to produce new films, TV, and internet streams which currently lack funding.
Users will purchase FLICK tokens connected to projects they are willing to fund. If those projects are successful, the token holders receive a portion of the distribution profits.
The project bears a lot of similarity to general crowdfunding with Netflix (NASDAQ:NFLX) mixed in. I think the point of differentiation here is that FLICK holders determine which projects receive funding and not the project team, i.e., Netflix.
Like any crypto-based projects being built on blockchain using a smart contract protocol, it’s too early to say whether Flickto will be successful. But, if Charles Hoskinson was right, Flickto will provide an inherently higher degree of safety than a similar ETH-based project.
What to Do About Cardano
Cardano is playing the long game. I think that’s why a lot of people like the project and will remain fans of ADA stock.
Remember, while Charles Hoskinson was one of the co-founders of Ethereum, he is also the founder of IOHK, the company that oversees Cardano and ADA. It speaks volumes that he is so adamant about Cardano in its ability to one day overtake Ethereum.
Cardano is measured in its approach. That approach has gotten the company this far — it’s the No. 6 ranked cryptocurrency by market capitalization. That also speaks volumes about overall sentiment behind the project.
Crypto investors sometimes throw capital into silly coins, but this isn’t one of them. Cardano is less than halfway through its road map, which lays out significant milestones for the project.
It has only recently added smart contract functionality, meaning it is likely just over 40% of the way to achieving its major milestones. I have yet to see any reason not to consider ADA.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.