$ADA – Does the ADA treasury turn into a liquidity gate or a volatility trap?**

The ADA coin saw a sharp decline of ~6% after a split within the Cardano community over the proposal to use 100–140 million ADA from the treasury to support stablecoin liquidity within the system 🌐.

🔍 **Divergent viewpoints:**

Supporters, led by Charles Hoskinson, believe that this funding is essential to enhance DeFi and the treasury strategy without direct negative impact, using OTC deals and tools like TWAP.

Opponents warn of potential selling pressure as a result of the public disclosure of the amount, which could lead to an unwarranted drop in price, preferring the issuance of cryptographically backed stablecoins without liquidating ADA.