The Midnight team, a subsidiary of Input Output Global (IOG) – the brains behind the Cardano blockchain, made a major announcement yesterday on X (formerly known as Twitter. The statement read: “Here’s the news you’ve all been waiting for – the Midnight Network devnet is now LIVE. We can’t wait to hear your feedback and see what the community will build on. Let’s go!”
This announcement heralds the beginning of a new era for the Cardano ecosystem, introducing the Midnight Network, a privacy-centric blockchain designed to address growing concerns over digital privacy. The devnet’s launch is a strategic move, emphasizing IOG’s commitment to enhancing data protection in blockchain technology.
A key highlight of this initiative is the selection of 100 ‘Midnight Pioneers,’ chosen to access the early alpha release of the blockchain. These pioneers are tasked with developing data protection applications on a private network, thereby playing a pivotal role in refining Midnight’s capabilities.
In their announcement, the Midnight team also emphasized community engagement, promising future events like live webinars, Q&A sessions, and additional opportunities for developers to access the devnet. They also highlighted future opportunities for a broader spectrum of developers to access the devnet, hinting at an expansion of the devnet once initial progress is made.
Alongside the Midnight blockchain, a new token named DUST will be introduced. DUST is integral to the functioning of the Midnight network, and its role and utility are emerging as key topics of discussion in the cryptocurrency community. Several high-ranked Cardano community members recently teased the possibility of a DUST airdrop to ADA holders.
Impact On Cardano (ADA) Price
The crypto market often witnesses significant price movements in response to major developments such as new project launches or airdrops. For Cardano, the launch of the Midnight Network and the introduction of the DUST token could have a potential impact on ADA’s price.
Historically, announcing airdrops has led to a substantial increase in demand for the original cryptocurrency. This is primarily because token holders receive new tokens for free, incentivizing investors to buy e.g., ADA, in hopes of qualifying for the airdrop. Additionally, such announcements generate substantial media buzz and attract new investors, temporarily boosting the cryptocurrency price.
This phenomenon was observed in several instances, for example, with the Flare Network’s airdrop to XRP holders, which led to a spike in XRP’s price as investors bought in to qualify for the free Spark tokens. Similarly, Uniswap’s UNI airdrop in September 2020 led to a significant surge in both the trading volume and price of UNI, as it garnered considerable attention and value in the market.
In light of these precedents, the launch of the Midnight Network and the introduction of DUST could potentially trigger a similar effect on the Cardano price. While an official announcement on the airdrop and a snapshot date is still open, it could catalyze a new rally in Cardano’s price.
At press time, ADA traded at $0.3665.
Featured image from Shutterstock, chart from TradingView.com