I tried to create an account on https://portal.sql-contest.isccloud.io/account/login

Just the welcome mail never arrived.
the page proposed to contact admin in this case   

Note: If you do not receive an email, it might be that the username or email address entered is not registered for an account. If you are unable to remember the username or email address you used to sign up for an account, please contact your system administrator for assistance.

No further notice. Who is that system admin? Which mail ?
Not so impressive
 

SQL type TEXT maps correctly to %Stream.GlobalCharacter,
- anyhow this gets not granted on the way from ADO to IRIS-

it would be useful to check if the behavior is the same with a normal ODBC tool.
I tested recently the opposite direction from IRIS to WinSQL and that was OK.

Since transmitting streams always requires some chopping and assembling
at both ends not to break the buffers, it is important if the error persists outside ADO.

just a minor part:
Is it possible while sending an insert/Update to database via the ado driver for iris, that this SQL is executed without creating a cached query?
NO:
In IRIS and also the latest of Caché / Ensemble every query is cached. 
real non-cached queries date back by ~ 10 years. It wasn't just that visible.
 
As you describe it, it seems the LONGVARCHAR or LONGVARBINARY
are not honored correctly when coming from ADO.

pls. Check the related class definition.
And be aware that once created as VARCHAR it can't be changed  
dynamically to LONGVARCHAR  on the fly. This type is a static definition.