#CardanoDebate Cardano Debate: Stablecoin Solution or Sell Pressure?

The Cardano community is divided over Charles Hoskinson's proposal to convert $100 million worth of ADA into Bitcoin and native stablecoins to boost DeFi liquidity. Here's a breakdown ¹ ²:

- *The Proposal*: Hoskinson suggests swapping 140 million ADA from the treasury to generate non-inflationary revenue and build up Cardano's DeFi economy.

- *The Goal*: Achieve a 33% to 40% stablecoin-to-TVL ratio, addressing Cardano's liquidity imbalance and enhancing user experience.

- *Concerns*: Critics warn that the plan could trigger further ADA price drops amid current market weakness, citing potential sell pressure.

Community Perspectives

- *Supporters*: Believe the move will unlock capital, attract institutional users, and increase adoption of Cardano-native assets.

- *Critics*: Suggest minting a crypto-backed stablecoin using ADA, then deploying it into liquidity pools alongside ADA on top of Cardano DEXs.

Market Impact

- *ADA Price*: Dropped 6% amid the debate, with some investors expressing concerns about the treasury plan.

- *Cardano's Ecosystem*: Faces a significant stablecoin shortfall, limiting DeFi expansion and competitive positioning ³.