BOMB IN CARDANO! Hoskinson Proposes to Sell $100 MILLION in #ADA for Bitcoin and Stablecoins
A Strategy to Boost DeFi and ADA Liquidity?
Charles Hoskinson, co-founder of #Cardano , has launched a bold idea that is generating intense debate in the community, converting $100 million worth of ADA tokens from the Cardano treasury into a mix of #bitcoin and stablecoins (such as USDM and USDA).
The main objective of this maneuver would be to significantly boost the liquidity and DeFi functionality of Cardano.
"We could take $100 million of ADA from the treasury, convert it into a mix of existing stablecoins on Cardano, like USDM and USDA, and convert some of them into bitcoin to turn it into high-quality bitcoin DeFi," Hoskinson said in a YouTube live stream.
Ignored Criticism: Hoskinson dismissed concerns that a $100 million sale of ADA would negatively impact the token's price, labeling critics as "inexperienced" and assuring that the sale "would not cause any issues at all."
DeFi Liquidity Goal: The aim of this conversion is to increase the ratio of stablecoin issuance to Total Value Locked (TVL) in Cardano from the current 10% to a range of 30% to 40%.
Current Cardano DeFi Data: Currently, the TVL in Cardano amounts to $356 million, with only $31 million in stablecoins minted on-chain (according to DefiLlama), highlighting the need for liquidity to achieve the proposed goals.