#CardanoDebate

# Cardano Community Divided Over $100M Stablecoin Proposal

The Cardano community is currently embroiled in a heated debate over a proposal to allocate **140M ADA (~$100M)** from the treasury to boost stablecoin liquidity on the network. The discussion has led to a **6% drop in ADA's price**, with the token falling to **$0.6412** amid market uncertainty .

### **Key Arguments**

- **Supporters**, including Cardano founder **Charles Hoskinson**, argue that the move will enhance **DeFi adoption** by addressing the lack of stablecoin depth. Hoskinson suggests **gradual OTC sales** or algorithmic execution to minimize market impact .

- **Opponents**, such as influencer @cardano_whale, warn that **front-running** and immediate sell pressure could drive ADA’s price down further, proposing **crypto-backed stablecoins** instead .

### **Market Reaction**

The proposal has sparked volatility, with ADA testing **$0.625** before rebounding slightly. Technical analysis shows resistance at **$0.645**, while trading volume surged near **$0.622**, indicating strong investor interest .

This debate highlights the **challenge of balancing long-term growth with short-term price stability**—a critical test for Cardano’s governance model .