The rock star revealed he’d purchased $300k of ADA as it was more “affordable” than Bitcoin
On Friday, rock star and Kiss frontman Gene Simmons tweeted that he had just purchased $300,000 of Cardano in the belief the price was going up. Simmons isn’t totally new to crypto – last September Simmons replied to a Cameron Winklevoss tweet about buying Bitcoin and Ethereum with a cryptic “I will. I am.”, and at the start of February, he revealed that he’d bought or was buying Bitcoin, Ethereum, Litecoin, XRP, Dogecoin and others.
His reasoning for adding ADA to his portfolio? In a follow-up tweet the Kiss bassist explained, “Well, for one thing, it’s affordable to almost everyone. It’s pennies compared to my other holdings like Bitcoin, which is over $50,000 a single coin.”
Now, clearly the logic that Cardano’s low price makes it more “affordable” is flawed – the value of a coin should be determined by its market cap, not by its price. However, this tweet does give us a window into the way many crypto newbies think.
The uninitiated retail investor often looks to price first, believing it to be the main factor that drives a token’s performance potential, which goes some way to explain why so many people from outside the crypto space suddenly got involved with the recent Dogecoin frenzy. So, the endorsement of a cryptocurrency that costs just “pennies” by a rock star to his almost a million followers is likely to attract new retail investors to ADA in the short term.
However, the more experienced crypto investors are also likely to be bullish on Cardano at the moment as decentralised finance (DeFi) users flock to it to escape high Ethereum gas fees. In fact, Cardano’s current development of the K Ethereum Virtual Machine creates a permanent bridge between the two ecosystems and could drive utility demand for ADA.
Another piece of positive news is the imminent launch of the Goguen upgrade at the end of this month, which introduces the ability to create user-defined tokens for transactions on Cardano. Moreover, once these updates are complete, Cardano will be more decentralised, which could qualify it for that so far elusive Coinbase listing, thereby boosting its price further.
So, there is certainly plenty of cause for newbies and crypto vets alike to be bullish on ADA just now. Gene Simmons will certainly be feeling good about his investment – he’s made around $40,000 over the weekend. He has since disclosed investments in Chainlink and Binance Coin as well, so it’s possible those coins could also experience the Simmons pump.