There are several reasons which Cardano critics bring up because they do not want to purchase the blockchain. As an investor, when researching a coin you are interested in investing in, you need to look at the appraisals and the criticism before deciding to venture into holding the coin. It is imperative to look at the contrarian point of view of your investment.
The first criticism is that Cardano is overvalued. Cardano is worth about 40 billion dollars or so at the moment, and almost no functional application is built on the Cardano chain. The primary use of Cardano is Staking. The current price is always based on the anticipated value. The current price of Cardano is riding high on hype versus actual demand for the token based on utility. The fundamentals that will drive demand in the future are currently not there. A coin being overvalued is not a new occurrence in the crypto space.
Just because Cardano is currently overvalued does not mean that it will drastically go down. The higher the market capitalization, the more serious it is in many investors' eyes, which will make the market capital, in turn, go higher.
The second criticism leveled against Cardano is that nothing is built on the Cardano blockchain. There are a few things built on Cardano, but realistically speaking, there is no ecosystem for Cardano, which makes the criticism valid.
The truth about this is that it is difficult to have an ecosystem when there is no smart contract functionality. Cardano smart contracts are not coming, the test net is due for late April, and smart contracts are scheduled to go on the main net around August if the timeline is not neglected. Cardano has not really "opened its gates" for an ecosystem.
At least, by the first quarter of 2022, they would be able to build over a dozen applications on Cardano.
Charles Hoskinson stated some time ago that about a hundred protocols are planning to either build on or integrate their token on Cardano.
The third criticism of Cardano is that it is too slow in its development. Cardano is indeed moving very slowly, especially for a crypto project. Since Cardano launched, many other blockchains have also launched. For example, Elrond has a vast ecosystem currently. It was launched a year after Cardano and has delivered more in less time. Avalanche is another example, except that Avalanche was launched in 2020, and it has made more progress than Cardano.
It is understandable why Cardano is taking its time; they want to get things right from the beginning. They want to build the best possible blockchain, and hopefully, when Cardano releases smart contracts on the main net later this year, things will be better.
Cardano has the chance of capturing the eye of long-term investors, but then there is a lot of competition it has to face. It does not matter how good your blockchain might be, only if you get people to use it.
