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Cardano frustrates market with DEX launch: ADA drops 7%

After almost two months, Cardano (ADA) will finally have the launch of its first decentralized exchange (DEX). SundaeSwap will be launched on December 5th, as announced by the team responsible for DEX. However, the launch appears to have frustrated the market as DEX will be launched as a testnet. That is, will be …

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After almost two months, Cardano (ADA) will finally have the launch of its first decentralized exchange (DEX). SundaeSwap will be launched on December 5th, as announced by the team responsible for DEX.

However, the launch appears to have frustrated the market as DEX will be launched as a testnet. That is, only test operations on the platform will be allowed. As a result, the ADA token drops more than 7.3% this Friday (3), worth R$ 8.89.

New disappointment frustrates Cardano

As reported by CriptoFácil, the announcement of the creation of SundaeSwap took place on September 17, almost two months ago. Thus, Cardano users hoped that the team could get the platform ready for full operation.

However, in addition to releasing just one test network, SundaeSwap Labs has warned that it will be keeping an eye out for possible errors. In fact, the team stated that it expects failures to occur while running the testnet.

“A testnet serves several purposes. First, to identify any bugs that don't go unnoticed by thousands of users, as opposed to developers and auditors who have been working for months. Because of this, we are expecting bugs and we look forward to hearing about them. You can submit feedback and bug reports through this form.”

In principle, this is a sensible measure of security and preservation for users. But Cardano is already coming from a failed launch of a DEX, Minswap, which took place in September. At the time, Minswap – also launched as a testnet – had several problems with token exchanges.

According to Input Output (IOHK), the company behind the development of Cardano , the problem occurred due to “competition issues” between the tokens. The Minswap team halted testing and said it would analyze the data and redo the launch, which is also slated for December.

The creator of Cardano, Charles Hoskinson, guaranteed that the DEX will be ready “for the Christmas launch”. However, these incidents call into question Cardano's ability to scalably and securely execute smart contracts.

Suspicions in Cardano's capacity undermined much of the ADA token's valuation in 2022. The token reached its all-time high (R$15.70) in August, but has lost nearly 50% of that valuation since then.

Finally, SundaeSwap Labs did not say how long the testnet would be active. After the testing period, DEX will be evaluated and a new release roadmap will finally be executed. With that, the ADA can recover part of the lost space in the second half of 2022.

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