CARDANO BLACK HOLE

[00:00:05]Welcome back to a special episode right here on the Crypto Visor podcast where we're going to be discussing Cardano's black hole. And this is a black hole not only from a price perspective, but also from a treasury being raided perspective. We've covered this heavily on this channel, the fact that Cardano's funding mechanism continues to draw millions, really tens or hundreds of millions of ADA out of the treasury and into the community's hands to build projects. But are these projects actually bringing value to the ecosystem or is this just a liquidity drain, a liquidity suck and a rating of the treasury? That's what we're going to be discussing in today's video and as you guys know, we've been covering Cardano on this channel effectively since we started this channel. I've been following Cardano since it launched. And uh in the previous cycle, we effectively saw the price three uh 100X from about 3 cents to $3.10 and then come down. And when I sold my ADA understanding the data of the blockchain, understanding the adoption curve, the use cases, the technological upgrades or lack thereof, I was told this was the biggest uh mistake of my investment career selling my Cardano because I would end up buying it back at higher prices even though I never said I was going to be buying back Cardano at all. And so far to date, we have traded Cardano in the last cycle, but as I explained or I should say in the bear market, but as I explained um you know, with Cardano, once they kind of pulled back on the whole USDC conversation when some of the community members were trying to get USDC uh proposals integrated, that for me let me know this ecosystem was not serious about real integrations, of real capabilities and we're not able to see where the Wall Street kind of timeline was and this has effectively hurt Cardano. And I believe part of the reason that we're seeing the liquidity drain out of Cardano is not just because of the lack of capabilities on the chain, but also because of the draining and the rating of the treasury. That's what we're discussing on today's video.

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[00:03:06]And so, to all of our non-channel members, welcome back. And uh one of the things we've been talking about Cardano is what is going on right now, right?

[00:03:13]The the precipitous fall from all-time record highs, the precipitous fall from the yearly highs that we had during this cycle, from over a dollar down to basically the uh the low double-digit cents, right? I mean, we're not even in the dollars anymore. And for the most part, have not even gotten into the dollar range in this cycle for any meaningful period of time. And what is the reason behind this? It's not because people were focused on hyper liquid and MicroStrategy and the Bitcoin ETFs, it's because of the fundamentals of this ecosystem. And exactly what Michael Saylor is doing with MicroStrategy by selling shares on the open market and stretch on the open market to raise money to buy Bitcoin, even though the underlying assets may appreciate, you as a shareholder continue to get diluted.

[00:03:59]And this is how Bitcoin was at all-time record highs and MicroStrategy was down 70% in three or four months.

[00:04:06]At the same time, Bitcoin was at all-time record highs. And so, what is going on in Cardano? Well, I saw this tweet as all of the drama was unfolding recently in the Cardano ecosystem where Ledger says that they submitted three proposals to the Cardano 2026 budget process covering the work that keeps Cardano solid on Ledger devices.

[00:04:26]They talked about Cardano app maintenance, clear signing for Cardano's top dApps, and Ledger button integration, and a full Cardano improvement proposal 113 token standard support. Now, what's interesting uh not that Ledger is putting in proposals. I don't know if they do this in all other uh crypto ecosystems, but I did find this kind of interesting because this kind of goes in line with my thesis, right? Everybody, whether they're actual developers, whether they're actual companies, or that they're just looking to drain money from the Cardano ecosystem, are trying to get their hands on Cardano's treasury. And this is a huge issue because it's no longer really about the technology, it's about the money and how people can drain Cardano. I don't even think that this is a uh like a Cardano maximalist or actual Cardano developer problem. At this point, I'm starting to think that this is the Cardano developers allowing these non-developers to come in the ecosystem and raid the treasury. And you can see on Project Catalyst, which is Cardano's {quote} {unquote} governance funding mechanism, which I've been very critical of.

[00:05:32]Um you can see all funds so far, we're now on uh fund 15. As soon as they end one fund, they immediately start another one. And And we're talking about hundreds of millions of ADA that are being distributed. And this is equating to hundreds of millions of dollars. And so you can see all these funds so far.

[00:05:52]Like they don't even put the dollar amount because it's so absolutely ridiculous. But you can see that, you know, during the bull markets you see funding increasing. And then during the bear markets funding starts to decrease. Probably because the price of the asset is is much lower. But you can also dive a little bit deeper. So fund 14 which just took place. And by the way, if you're up to this point in the video, don't forget to give the video a thumbs-up and consider becoming a channel member by clicking the join button down below. Super followers and above get access to members-only exclusive videos. And if you want to see previews to these videos, just look for any of the videos that say preview in the title. If they say preview in the title, it's the first few minutes of these members-only videos, so you can take a uh it's like a teaser video, and then consider joining at the super follower level and above. But back to Cardano. So in the most recent proposal uh or I should say fund, fund 14. This is the 14th round of funding.

[00:06:46]>> [clears throat] >> You can see 22 projects were funded that have already been completed, right? And we're going to deep dive into a few of these cuz I want to show you. In this fund, um and I think these funds go every like 6 months or so, total that has been funded at the time of the results was 12.6 million dollars or 18 and a half million ADA.

[00:07:08]Um there's already 8 and 1/2 million ADA distributed. So I want you guys to think about this. Just in the last 6 months to a year, right? Just in this proposal, they've already distributed 8 and 1/2 million ADA for quote-unquote development of the ecosystem. Number one, are we seeing development or are we seeing infighting and collapse? That's what we're talking about black hole because they could be funding all these projects, but where are the results?

[00:07:35]Where are the results? That's the big question. And so when we deep dive a little bit further, you can see fund 13, the one prior to fund 14.

[00:07:45]Uh 118 funded proposals are already completed. Not just that that they've submitted the proposal and got it approved, but that they completed these proposals and got the money.

[00:07:55]Again, 48 million dollars in US was the fund value at the time. They've uh already distributed almost 35 million ADA from this fund.

[00:08:06]Where is all the money going? If we go back to fund 12, fund 12 was 20 million dollars US. They've already distributed 38 million ADA.

[00:08:16]And again, to the Cardano bag holders, they are failing to realize that every single time that these projects are being funded, what do you think these projects are doing? They're liquidating the ADA to bring dollars or whatever their currency is, to then go and pay developers and pay for whatever they're doing. Or if it's even worse than that and they're not actually building anything or doing anything, and not actually completing anything, taking the money and running to other ecosystems or out of the crypto ecosystem altogether. Fund 10, 11.4 million dollars US. Already 40 million ADA have been distributed. And again, these are four propo- four funds that we're talking about with potentially hundreds of proposals, right? Fund 10 had 192 proposals funded.

[00:09:04]So, out of 192 proposals funded, how I would expect at least one of these proposals to bring actual value to the Cardano ecosystem that we would have heard about. But, have you heard about any? I haven't.

[00:09:19]Now, part of the situation may be just I'm just not following Cardano that closely, so maybe I'm missing something here. But then I said, let's dive a little bit deeper.

[00:09:28]Let's look at some of these proposals.

[00:09:29]So, this was one of the proposals um that was put in. A Catalyst School.

[00:09:33]Remember, the funding mechanism is called Project Catalyst. This is chapter of Indonesia in collaboration with the Gadjah Mada University. So, it says here, the problem is that Indonesian university students are hesitant to submit proposals to Cardano um due to lack of Catalyst or Project Catalyst exposure, the language barrier, and the daunting prospect of being scrutinized by a global community.

[00:09:59]And so, they are effectively looking to teach people how to submit proposals to then go and get money from the Cardano ecosystem. This is being literally funded. This has already been approved. They've already received 23,000 ADA or 19,000 ADA for this project. And it's being completed. And I I I don't know. I mean, maybe you guys can tell me something different if you're a Cardano holder, what value this actually brings to the Cardano ecosystem. This is actually in line with my thesis that they're milking the treasury, right?

[00:10:35]They're They're not only milking the treasury, they're taking more money out of the treasury to teach more people to milk the treasury. So, what did they get funded for? Well, the first milestone, and this is again, this is October 2023.

[00:10:47]Let's go to the most recent one, August 12th of 2025.

[00:10:51]And again, all everything has been paid out, right? 5,000 ADA already just from this milestone.

[00:10:57]So, um the evidence of milestone completion was four recorded videos of Catalyst and deep funding workshops that could be checked via their YouTube channel, Google slides and presentations for each workshop, and a Trello board for the management activities. So, for doing that, for recording four videos on how to get deep {quote} deep funding from Cardano, they got 5,000 ADA or almost 6,000 ADA just from that milestone. Okay, but altogether, they've received 19,000 ADA so far.

[00:11:31]Let's see on their other milestone what they did. They translated Project Catalyst, right? The funding mechanism documents into the Indonesian language.

[00:11:39]They recorded videos, more Google Slide presentations of each given workshop. Um and then they have a GitHub for detailed project management and stuff like that.

[00:11:51]What is the point of this? Why do we need students in Indonesia submitting proposals to Cardano to get funding?

[00:11:58]What are they building? What are they doing? Why are they Why is the Cardano ecosystem paying for this to be done?

[00:12:07]I don't get it. Maybe I'm missing something. Again, maybe I am missing something. You guys let me know down below. But then I said, "Let's go look at the the highest valued proposal from the the most recent fund." And so we went to Fund 14, and again, this is the most recent proposal. And um 3.3 million ADA have already been distributed.

[00:12:29]>> [cough] >> And so [clears throat] when we scroll down and we sort this by the most ADA um being requested I figured, "Okay, let's ignore the AI. Let's ignore the Corporate Lab.

[00:12:41]Okay, real-world adoption, Bitfrost, Hydra, onboard 50,000 Nigerian farmers."

[00:12:47]Hmm. But I saw one that was really interesting. It said Indian Chain. And so I clicked into Indian Chain and it says Indian Chain. The Indian government's 10 million settlements on Cardano. And I was like, "Hmm, this is interesting." And they asked for 570,000 ADA. They've already received 300,000 ADA.

[00:13:06]And so I said, "What are they trying to solve?" So the problem, they say, is the Indian Agricultural Department secure lacks a secure unified system for record settlement, network authentication, and credit access, causing inefficiencies, risk of adulteration, and suffering for farmers.

[00:13:22]Sounds like a real problem. The solution is these companies are building an Indian chain to secure 10 million agri settlements for the state government.

[00:13:31]They propose integrating Cardano to ensure record integrity, fair credit, and prevent adulteration. So, they already created a product, but then they want to put it on Cardano using Cardano funds. And so, I said, "Okay, let's look at their milestones." because every milestone has been approved, right? They already got Um and by the way, this proposal was from November of 2025. And so far, they've received 308,000 ADA. What did they get the ADA for? Well, you can go and look. Milestone one, project kickoff. What did they evidence a milestone completion? The completed Indian chain project kickoff plan is in a online format including timelines, resources, and technical specifications.

[00:14:12]So, they got 60,000 ADA for creating a business plan for the Indian chain project. 60,000 ADA.

[00:14:21]Milestone number two, evidence of milestone completion.

[00:14:25]Finalize system architecture design document, right? They're just They're just writing down what they're going to do. They're not doing it.

[00:14:33]They're writing down what they're going to do including the full back-end architecture and API map, Cardano integration layer, security and compliance design, infrastructure and hosting strategy.

[00:14:42]And um they got 120,000 ADA for that, okay? 120,000 ADA for creating a business plan. Okay, third milestone.

[00:14:53]Uh recorded demonstration videos, voice-over walk-through of integrated system showing key functionality like farmer credit verification process. The video will clearly present user interactions, back-end integrations, and Cardano transaction confirmations.

[00:15:08]Cardano testnet transaction links verifying system operations, and uh integration design document, another document describing system architecture uh has been created. They got 160,000 ADA for that.

[00:15:22]So, they're creating a video of how this is going to work and they get 160,000 ADA for that. Um listen, I'm not a Cardano holder. So, I don't really I don't have skin in this game, right? I'm showing you guys how bad this actually is because I bet you most Cardano holders don't even realize like where this money is going and the fact that it's it's not creating value. Don't you think that Charles and Cardano Foundation and everybody in Cardano would be talking about Indian chain if it was really getting uh implemented into the Indian agricultural ecosystem or whatever?

[00:15:57]Anyway, uh in their final again, they now have main net launch documenta- more documentation, more ADA, but where is the product? And again, these are just two projects that I just showed you. You can go to Project Catalyst website, projectcatalyst.io, and just go look through these funds yourselves and go see. Again, I am not a holder, so I don't have any skin in the game. It doesn't matter to me how low Cardano goes.

[00:16:23]Obviously, I feel for people who are holding it, the developers, people who really care about it, and all of that, but there's probably a lot of bots as well.

[00:16:31]And I was like, "Cryptoviser, you're just you're just fudding. You're just fudding." And it's like, "No, we don't have the Indian government on the Cardano blockchain, so where did that money go? Like, is that really how much it cost to build a document?" Like I've stated on this channel many times before.

[00:16:50]The fact that Project Catalyst is funding the operations of all of these third-party projects that don't bring any value to Cardano, this is the same thing of, you know, MicroStrategy selling shares on the open market to buy Bitcoin. Like, you can go buy Bitcoin yourself without the risk, without the overhead, and they're creating an existential risk for Bitcoin as well.

[00:17:11]And in my view, this liquidity drain of the uh ecosystem, this has been going on for years.

[00:17:17]And they've allowed it. Like who is they? I don't know. The whales, the people who are voting, and all of these school I mean, the guys they're creating schools to teach people how to suck money out of the Cardano treasury.

[00:17:34]They're literally saying that in their in their Catalyst proposal. Oh, well, the Indonesian schools the the students are very scared to submit proposals cuz they don't even understand what Cardano is or what the project Catalyst system is. It's like, yeah. Those people probably shouldn't be submitting proposals, right?

[00:17:50]And so this is creating a huge issue where the bag holders are are are blaming Charles for the price going down instead of blaming this ecosystem that is being built and has been built. As I've explained, when Cardano shut down the key opinion leaders or influencers in Cardano that were trying to submit proposals for Cardano to get USDC, I knew it was over. I knew that if they get USDC before the integration of Wall Street, it was over for Cardano. And so far, it's not me saying this. The price is saying this. We are at lower prices today than we have been since before the last two bull markets ago. We just got out of a bull market and the bull market before that.

[00:18:33]So we're effectively back where we were when I started this channel in 2018.

[00:18:38]Maybe a little bit higher than that. But I mean, let's go back to 2018 when I started this channel. I started this channel in 2018 right here. And the price was yeah, 5 to 10 cents, right?

[00:18:49]Almost ICO prices. And I think that the price is going to continue to go lower because the funding continues to happen. And it's not just that the funding is occurring, right? That these all of these Catalyst funds are getting proposed and funded.

[00:19:03]But the the fact that they're then dumping the the coins. And you have to remember, I don't know what like uh the the the Indonesian uh like monetary system looks like or what the Indian monetary system looks like. But in my view, I would imagine in India 570,000 ADA is a lot more than in the United States.

[00:19:28]In Indonesia, 50,000 ADA is probably a lot more in terms of purchasing power, in terms of, you know, status in in in the financial system.

[00:19:39]I would imagine it's a much more money in Indonesia than it would be in the United States. So you have to kind of take your thinking cap off of US-based funding. This funding is going around the world, but where is it going?

[00:19:52]Like I would imagine you could probably do a lot more in terms of developing actual products with 50,000 ADA or half a million ADA in Indonesia than you can in the United States. And the fact that we still don't have real projects, real DeFi, real integrations, and it's not Again, it's not me saying this. This is the this is the data.

[00:20:12]Right? Again, I've been following Cardano effectively since it launched and definitely since it launched DeFi, and the DeFi is less than a hundred million dollars. And this this has not risen. People are like, "But Crypto Wise, we're in a bear market." We are, but look at the precipitous fall.

[00:20:27]We're again lower than we were in the last bear market, lower than we were multiple years ago when it should be higher. We should be reaching new heights, coming down possibly very precipitously from the price perspective, from a DeFi perspective, but we should still be higher than where we were before.

[00:20:47]Example, Bitcoin. Example, Nvidia.

[00:20:50]Example, Tesla. These stocks and cryptos come down, but when they come down in precipitous falls, 40, 50, 60 even percent, they're still higher than they were in the last bear market. And a lot of these altcoins are not going to be there because of this liquidity suck.

[00:21:04]This This not specific to Cardano, but I do think that the Cardano block black hole is uh it's sucking everything in and it's it really it's sucking the liquidity.

[00:21:15]And because there's lack of liquidity in the macro crypto space right now, this is creating a existential crisis for Cardano because you have all of these funds that have been paid out over the last few years and maybe some of these fund uh recipients haven't sold the ADA yet. But as the price continues to drop, they're selling. So you have the whale selling, you have the uh traders selling, you have the project catalyst recipients selling. Everybody's selling. Who's buying? And that's a huge issue. And that's not something that Charles can fix, right? That's a This is an ecosystem problem.

[00:21:50]Uh so I'm not saying that Charles doesn't have an influence. He could probably say, "Guys, we we need to stop funding immediately." But he's not saying that.

[00:21:57]Cardano Foundation is not saying that.

[00:21:59]None of the uh influencers are saying that. And so that means it's going to continue, meaning the acceleration of the downtrend is going to continue.

[00:22:09]And when is it going to stop? People are like, "Well, once once the bull run comes, everything will be good." That's not what happened with IOTA. That's not what happened with EOS. That's not what happened with Litecoin. That's not what happened with Stellar. That's not happened with a lot of these altcoins that were in the top 10. And once they exited, and I said this at the beginning of 2026, if Cardano exits the top 10, it's effectively over because it's very hard to get back in, especially when you're competing with the Wall Street chains and the banker coins.

[00:22:39]With that, let me know what you guys think about Cardano. Do you think that Cardano can recover? Will recover? How low will it go? And what do you think about the Cardano treasury funding mechanism? Should they cease all funding immediately or are they going to continue to fund into oblivion?

[00:22:57]By the way, you can also become a channel member, get access to our members-only exclusive videos. Click the join button down below. Super followers and above get access. You can cancel at any time if you don't like it, but so far I've gotten really good feedback from our members and I appreciate every single one of you who are members and who watch every single day. See you guys in the next one. Give the video a thumbs up. Hit the subscribe button. That way you never miss a new video.

[00:23:17]And thanks for watching.