Traders who have despaired over the performance of the ADA token in recent weeks may have cause to smile again. This is because the first Cardano-powered decentralized exchange is about to launch a token sale to generate additional financing to drive the next phase of its growth.
AdaSwap will be the first decentralized exchange on the Cardano network. It plans to sell 80 million tokens at $0.005 each, as it aims to raise $400,000. Half of the allocated tokens will be released at the token generation event, while the rest will be released later.
One of the criticisms of the Cardano network has been the reliance on centralized networks to trade and exchange ADA tokens. AdaSwap will mark Cardano’s first foray into the world of decentralized exchanges (DEX). By creating a gamified, native DEX for the Cardano blockchain, users will be able to buy, sell, or swap ADA tokens and buy and sell artwork and other NFT products, earning interest on their staking activity. AdaSwap will also serve as a native marketplace for non-fungible tokens (NFTs) as well as a high-yield liquidity pool.
The native token to be offered for sale in the IDO is the AdaSwap token (ASW). ASW will be interchangeable with ADA and other tokens powered by Cardano on a near-zero transaction fee status.
The sale will hold on the CardStarter IDO launchpad. This IDO sale may create additional demand for CardStarter’s native token (CARD).
How will this sale impact ADA price predictions?
ADA Price Prediction
Tuesday’s bounce indicates that ADA/USDT may have found a floor at the 1.197 support level (26 June/4 December lows). Additional momentum on the demand side needs to come in to boost bullish ADA price predictions, with bulls targeting price discovery at 1.499 and 1.837. 1.600 may come into the picture as a pitstop, being the site of 24 May, 15 June and 28 November highs.
Only a decline below 1.197 negates these projections. This move opens the door towards 1.019, the site of previous lows seen on 25 April, 19 May, 22 June and 20 July.
Cardano: Daily Chart
