Cardano Founder Charles Hoskinson's proposed a treasury of 100M USD in stable coins and BTC for liquidity. Currently, its treasury consist of 90% ADA, which leaves their financials more vulnerable to price volatility and no yield.
Many interpret the move to be motivate by lack of faith in the appreciation of ADA, which might not be the case.
His proposal is to balance the nominal value and allow his treasury to yield in stable coin and BTC so that the Foundation would not need to sell $ADA in the open market for liquidity (e.g for raising capital).
He argues that, the pressure exerted by their sales in addition to negative market sentiment depress the market in the worse time damaging their solvency.
A 100M sale would certainly be akin to a major unlock, which is inherently bearish. However, in the long run, provided Cardano refrains from selling their tokens in large sums in the future and that the Network continues to grow in tandem, the new paradifm could indirectly stimulate its price,
ADA (perspective for traders)
from 2024/12/08 to 2025/06/12 the price went from ~1.32 to ~0.6. To date, it has lost 50%.
The volatility in between perhaps reflects the lack of unanimity of their members regarding its financials. So, until the situation is solved, ADA holders will price in the proposed 100M USD worth of ADA sale depressing its price.
