Cardano Down Over 12% In A Month As Stablecoin Launch Is Pushed Back: 'Sell All Your ADA,' Says Report
Cardano's (CRYPTO: ADA) much-anticipated stablecoin Mehen (USDM) has faced delays in its launch date. Originally set to launch on Jan. 16, 2024, the Cardano team behind Mehen has pushed the release date back two months to March 16, 2024.
What Happened: The delay comes after an audit of Mehen's smart contracts by Sundae Labs surfaced issues that needed to be addressed prior to launch.
Matthew Plomin, Mehen's founder, announced the delay on Jan. 9, stating that changes need to be made to strengthen security and future-proof Mehen's smart contracts. This includes avoiding any liquidity-fragmenting policy ID changes down the line
Price Action: Cardano has dropped 12.1% over the last 30 days.
Why It Matters: The Cardano community agreed with postponing the launch to ensure a smooth release.
Ed n’ Stuff, a Cardano community member, tweeted about the appeal of a Cardano stablecoin: “The USDM stablecoin can't be frozen nor clawbacked unlike all #ETH stables like USDC/USDT. Freezing features are not a legal requirement in the U.S.”
The fiat-backed token is designed to serve as the backbone for Cardano's decentralized finance ecosystem, providing stability and liquidity.
What's Next: On Monday, research firm K33 Research released a strongly bearish report on Cardano, stating the network lacks meaningful activity and stablecoins like USDT or USDC to support value. K33's report was titled "Why you should sell all your ADA," and predicted the token will become worthless over time if activity does not pick up.
Whether Mehen's eventual launch can reinvigorate interest remains to be seen.
Read Next: What's Going On With Cardano? ADA's Dip Outpaces Losses In Bitcoin, Ethereum
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