Cardano’s underachievement is attributed to a multitude of factors, including low VC interest.

EMURGO‘s latest initiative targets the VC gap.

Cardano’s tokenomics are unfavorable for VCs.

Cardano’s methodical approach to blockchain development has steadily delivered technological and functional upgrades, with the recent phase 1 Chang upgrade for decentralized governance being the latest example. However, despite these advancements, the project’s stagnant token price has led some observers to label it an underachiever. Sponsored

Cardano’s underperformance stems from several issues, including lackluster marketing, the absence of major stablecoin integrations, and limited venture capital (VC) interest. However, a new initiative from EMURGO aims to tackle the VC gap.

VC Interest Heats Up For Cardano

To address the lack of VC interest in Cardano, EMURGO has unveiled a strategic partnership with Antler’s newly launched innovation platform, Ibex, which aims to accelerate the growth of projects built on the blockchain.

The initiative aims to provide comprehensive support to Cardano startups addressing real-world challenges. Sheldon Hunt, head of Cardano Ecosystem at EMURGO, stated that projects will get assistance in transforming their ideas into scalable businesses. This support encompasses funding, mentorship, and access to a network of industry contacts, including influential figures in legacy industry and finance firms.

EMURGO clarified that the Ibex partnership also aims to develop commercially viable Web3 solutions, enhance Cardano’s technological capabilities, and “drive breakthrough innovation.”

The announcement has been warmly received by the Cardano community, with many holders seeing this development as a promising step toward addressing the perceived lack of VC participation in the ecosystem.

Hoskinson Explains VC Hesitation

Input Output CEO Charles Hoskinson had previously explained why Cardano had seen limited VC interest. At Messari’s Mainnet event in 2022, he suggested that some VCs might overlook Cardano due to the lack of “Ponzinomics” in the project’s tokenomics.

Hoskinson noted that many VC firms follow a strategy of investing early, artificially inflating the token’s value, and then selling at peak prices. He argued that Cardano’s commitment to fair token distribution has made it less attractive to VCs who are used to this short-term investment model.

Even with misaligned incentives, Hoskinson believes VC firms will eventually gravitate towards Cardano as native projects grow and reach billion-dollar valuations.

On the Flipside

No Cardano-only project has a valuation exceeding $1 billion.

While VC support can accelerate growth, it doesn’t guarantee a project’s success or widespread adoption in the long run.

Why This Matters

With this strategic Ibex partnership, Cardano is poised to challenge the notion that slow and steady can’t win the blockchain race.

Hoskinson hails the Chang upgrade as a technical triumph.Hoskinson Lauds Cardano as Living “Governance Virus” Post-Chang Hard Fork

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