Billionaire investor Mark Cuban is no stranger to controversy in the crypto world. He called metauniverse cryptography “stupid.” He used Twitter to praise the merits Dogecoin (DOGE 3.60%). And now he even suggested that Dogecoin is a better investment cardan (ADA 5.49%).
How can Cuban be more positive about Dogecoin than Cardano? At the end of the day, Dogecoin is still just a stupid meme coin created as a joke back in 2013. In contrast, Cardano is a leading blockchain project that builds very real applications. This seems like a silly comparison, so it’s worth digging a little deeper into Cuban’s claim.
Does market cap really matter for cryptocurrency?
For many cryptocurrency investors, market capitalization is a key starting point for understanding the relative value of a particular cryptocurrency. The higher the market capitalization of a cryptocurrency, the more valuable it is. Cardano, with a market cap of $18 billion, looks almost twice as valuable as Dogecoin, which has a market cap of only $9.4 billion.
So why does Cuban claim that Dogecoin is more valuable than Cardano? As Kuban said in a recent interview, market capitalization is easy to manipulate in the cryptocurrency world. There are several steps that developers can take to support the cryptocurrency market cap. With the right steps, Cuban says, you can quickly reach a large market capitalization.
Blockchains are a business
As a Shark Tank investor, Mark Cuban sees blockchain as a business. He is looking for tangible evidence that the blockchain actually creates value. It can be in terms of revenue, in terms of new applications that people use, or in terms of transactions that happen on the blockchain.
And when he looks at Cardano, he doesn’t see anything happening: “There should be there, there.”
Sure, Cardano can build a world-class blockchain, but there’s no real activity on it, and Cardano doesn’t generate any revenue, Cuban claims. As a result, he lost his investment.
But the “Cardano is useless” argument is getting old. Until 2021, Kuban could have the right. After all, it wasn’t until September 2021 that Cardano finally added smart contract functionality to its blockchain. But in the 12 months since then, Cardano has seen nearly 1,000 different blockchain-based projects and decentralized applications flourish. People are currently minting non-fungible tokens (NFTs) on the Cardano blockchain. There are plans for metauniverse worlds built on Cardano. And Cardano is even getting involved in the world of decentralized finance.
How do you assess the future of any cryptocurrency?
Comparing Dogecoin and Cardano, Cuban also brings a venture capital mentality to the cryptocurrency world. In the venture capital world, you are evaluating a company in terms of its future prospects. That’s why a startup with no customers, no products, and no revenue can be worth $1 billion—investors take into account future prospects. According to Cuban, Dogecoin has more future value than Cardano, which he believes has squandered its chances to create something of future value. As he said in an interview, “DOGE has more potentially available applications than Cardano.”
But how realistic is this statement? Yes, at the end of 2021, Dogecoin released a “Trailmap” for where it is going, and there are some interesting projects. But there are still no clear dates for Dogecoin’s transition to a full proof-of-stake blockchain. By contrast, Cardano already has a fully functioning proof-of-stake blockchain and is close to completing a major technology upgrade this summer. So again, Cardano seems to have a stronger base for future growth than Dogecoin.
It might be wrong to underestimate Dogecoin. Maybe Dogecoin really is going to the moon. But for now, it seems like too much of a speculative investment. As even Cuban admits, the price of Dogecoin is closely related to “sentiment”. And now I don’t have those moods. On the contrary, Cardano may be one of the most underrated cryptocurrencies on the market. Yes, it took a long time for Cardano to get to where it is today, but the future looks very bright indeed.