The price of ADA rose by around 16% in less than 24 hours. According to Hoskinson, the hard fork of the network will occur on June 30th, 2020.
In recent days, IOHK CEO Charles Hoskinson announced the activation date of the new hard fork of the Cardano mainnet.
On his Twitter account, Hoskinson published the roadmap for the next fork that will occur on the network. As he explains, the Cardano team scheduled the fork for June 30th, after completing tests on the network. The update aims to make the protocol go to a Proof of Stake (PoS) algorithm, to create and validate blocks.
The Shelley blockchain has been in a testing period since April 27th, when the first block was created in the beta version of the network. The last fork that Cardano experienced occurred on February 20th, the date when the blockchain changed its consensus algorithm. On that occasion, it used Ouroboros BFT as a new Proof-of-Stake mechanism.
Hoskinson, who is also a co-founder of Ethereum, said that Shelley will be open to all users on June 9th. Besides, he noted that they will begin to “put things together from start to finish” on June 16th. Finally, he explained that, if everything works without problems, they will make the move to Shelley on June 30th.
Effects of Announcement on Price of ADA
Hoskinson’s announcement prompted multiple users of the ecosystem to go to exchanges to obtain ADA, cryptocurrency token of Cardano. The high demand for the token caused its price to increase by around 16% in less than 24 hours. Early on May 28th, the price of the cryptocurrency was in the range of USD 0.055. At the time of writing this article, its price is around USD 0.064.
According to data from Cryptobriefing, about 37,000 wallet addresses bought around 7.85 billion ADA when the price of the cryptocurrency was around USD 0.054. Also, they said that they expect the demand for the token, as well as its price, to continue to increase due to the next fork.
However, they also said that it is important to take precautions as Cardano has consistently delayed several of the updates to its network. Likewise, they stated that the event can be used as a “buy the rumor and sell the news” scheme. This is a methodology used to quickly inflate the price of an asset.
After the announcement of a Cardano update last March, the price went as high as 20%. Announcements related to the activation of the new Cardano mainnet have raised expectations among its users.
Demand for a cryptocurrency typically increases due to announcements of its forks or halvings, increasing in its price. In the case of ADA, it will be experiencing increases in price until the next Cardano hard fork on June 30th. So that they can make their best decision, investors need to know when the best moment to buy or sell.
By Alexander Salazar