Should You Sell Your ADA After Mainnet Incident?

A major Cardano mainnet incident has left the crypto community divided, raising the urgent question many investors are asking: Should You Sell Your ADA After Mainnet Incident? The recent network partition, triggered by a malformed delegation transaction, temporarily split the Cardano blockchain into two chains before engineers resolved the issue.

Meanwhile, ADA struggles to recover, currently trading at $0.4172, with the asset still down significantly over the past month. As panic grows, understanding the fundamentals, risk landscape, and price trajectory becomes crucial before making any decision.

What Happened During the Cardano Mainnet Incident?

Cardano experienced an unexpected network partition that created two parallel chains, alarming validators, users, and exchanges. The issue stemmed from a malformed delegation transaction exploiting a previously undetected bug from 2022 within a core software library.

According to the incident report published by Intersect, the bug allowed an oversized hash to pass validation when it should have been rejected. Although older ledger versions hid the issue, a malicious actor triggered the bug using specialized tools.

Despite community concerns, Cardano did not stall, and both chains continued to produce blocks. Engineering teams from Input Output Global (IOG), the Cardano Foundation, and Intersect collaborated to deploy a hotfix swiftly. Node operators were instructed to update their nodes, making the poisoned chain invalid and strengthening the healthy chain’s consensus.

Several service providers temporarily paused ADA deposits and withdrawals, while a working group was created to reconcile valid transactions from the invalid chain.

READ ALSO: Cardano Whales Fuel Breakout as ADA Reverses Downtrend

Suspect Identified and Legal Tensions Rise

The malformed transaction was traced to a wallet linked to a participant from the Incentivized Testnet (ITN) era. Authorities, including the FBI, have begun investigating the attack.

An X (Twitter) user under the pseudonym Homer J claimed responsibility, stating the exploit was a “personal challenge” rather than a malicious or profit-driven attack.

However, Cardano founder Charles Hoskinson disagrees, calling it a premeditated attack by a disgruntled stake pool operator. He revealed that the attacker specifically targeted his personal pool, suggesting personal motivation and a long history of hostility.

ADA Price Analysis After the Mainnet Incident

ADA reacted sharply to the mainnet incident, falling nearly 7% at the time of the event and dropping over 35% in the last 30 days. The network uncertainty, combined with a recent whale losing $6.2 million in a failed stablecoin swap, added severe downward pressure on Cardano’s market sentiment.

Current ADA Price Data (Updated)

• Pair: ADA/USDT

• Price: $0.4172

• 24h Change: +1.88%

• 24h High: $0.4203

• 24h Low: $0.4040

• 24h Volume (ADA): 24.53M ADA

• 24h Volume (USDT): $10.112M

• Market Cap: $14.55B

• Rank: #10

Despite a slight 24-hour recovery, ADA remains far below its earlier levels as investor confidence seeks stability.

READ ALSO: Cardano (ADA) in DeFi: Progress, Protocols, and Price Outlook

Should You Sell Your ADA After Mainnet Incident?

Here’s a balanced analysis for holders debating whether to exit or stay invested:

The Incident Was Serious — but Quickly Resolved

Cardano’s engineering teams acted efficiently, patching the issue within hours. The network did not halt, and block production continued, showing resilience rather than systemic failure. This reduces long-term structural risk.

ADA Price Weakness Reflects Fear, Not Fundamentals

ADA’s decline stems largely from market psychology, not from permanent protocol damage. The exploit targeted a library bug, not Cardano’s consensus mechanism, meaning the core chain’s design remains intact.

Short-Term Volatility Is Expected

Incidents like this often create sharp, emotional selling pressure, especially from retail investors. A temporary dip does not confirm a long-term bearish trend — but short-term turbulence should be expected.

Long-Term Holders Still Have a Strong Thesis

Cardano still ranks #10 by market cap, maintains a highly decentralized validator network, and continues shipping updates. If you believe in Cardano’s roadmap and real-world use cases, holding may be reasonable.

READ ALSO: Cardano (ADA) Price Prediction November 2025

Conclusion

So, Should You Sell Your ADA After Mainnet Incident?

Not necessarily. While the network partition caused fear and triggered sell-offs, the bug was fixed quickly, and Cardano’s fundamentals remain solid. ADA may experience short-term volatility, but long-term investors might view this as a temporary setback rather than a reason to exit completely.

Before selling, consider your risk tolerance, time horizon, and confidence in Cardano’s future development.

For more in-depth crypto market updates and predictions, check out the latest posts on the Bitrue blog — or explore trading directly on Bitrue’s platform.

FAQ

Did the Cardano network halt during the incident?

No, both chains continued producing blocks throughout the event.

Is ADA safe to hold after the mainnet issue?

Yes, the bug was fixed quickly and did not affect core consensus.

Why did ADA’s price drop?

Market fear, a whale loss incident, and short-term panic selling.

Was the attacker caught?

The wallet was identified, and investigations are ongoing.

Should I sell ADA now?

It depends on your strategy — long-term holders may prefer to wait for stabilization.