Cardax Raises $1.6 Million From First Community Token Sale
Cardano’s decentralized exchange, Cardax, has announced that it realized $1.6 million from its first community token sale. The funds raised would be used to support other projects on the Cardano network beginning from September 2021. Cardax is built on the EAMM protocol, and the Cardano ecosystem will also use the same protocol for its trading platform.
Cardax investors can be liquidity providers and start earning the exchange’s governance token (CDX). Four months ago, the Cardano development team revealed that it requires at least $50,000 to complete the first phase of developing its exchange.
“Our budget in the next funding series is $50,000, and it’s mainly for implementation purposes to complete the first phase of our project. As previously revealed, the focus of phase 1 is Cardax’s UI/UX and system structure.” It is worth mentioning that the need for native exchanges on the Cardano mainnet became more emphasized after the Mary protocol upgrades on the network.
Closing Cardano’s Challenges And Gaps
The Cardano team has scheduled plans to fill gaps in the Cardano network, develop more use cases and enhance its adoption in the decentralized finance (DeFi) sector. There will be enhanced features in the project such as 1-transaction trading and transfers and the support tokens in the Cardano ecosystem.
According to the launch schedule, there are six phases of development before the final stage of the Cardax testing and development. Cardax’s exchange model will be similar to centralized exchanges regarding an order book and automated market maker.
As Cardano continues to grow in popularity and adoption, a Cardax launch will give additional respect in the virtual asset space. Overall, Cardax’s goal is to provide a trustless way for stakeholders to connect and enhance equal governance in the Cardano ecosystem.
ADA Might Drop 90%
After its Mary upgrade two weeks ago, Cardano is on the verge of becoming a complete smart contracts platform. Cardano founder, Charles Hoskinson, revealed that the platform had processed over $11 million in sales of non-fungible tokens (NFTs).
Hence, more projects continue to launch on the Cardano to utilize the blockchain‘s excellent transaction throughput, lower carbon footprint, and transaction costs. The latest is the spores network (an NFT marketplace) which announced that it would launch on Cardano after completing its latest fundraising round, garnering about $2.4 million.
However, popular crypto trader, Peter Brandt, has revealed that the increase in Cardano’s growth isn’t affecting its governance token, ADA. Brandt announced via Twitter that ADA is displaying the head and shoulder technical pattern, which denotes a bearish sign. Therefore, he predicted a decline for ADA, which contradicts the general bullish performance of the token on the year-to-date chart.
Peter Brandt’s ADA Tweet. Source: Twitter
The veteran analyst predicted a 90% drop for the token, which, if true, will make it trade at about $0.13 even though it currently trades at almost $1.27. Brandt gloated in his accuracy of predicting a similar pattern drawing comparisons to when he predicted a similar scenario for Litecoin three years ago.
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