Debate – Will the ADA treasury turn into a gateway for liquidity or a trap for volatility?

🚨 Will they save DeFi or sink ADA?

Cardano (ADA) has dropped about 6% after a heated debate over a proposal to withdraw 100–140 million ADA from the project’s treasury to support liquidity in stablecoins.

🔍 The supporting team, led by Cardano founder Charles Hoskinson, believes that this move will invigorate decentralized finance projects, without direct harm to the price, if executed smartly through OTC deals or tools like TWAP.

⚠️ However, the opposing team warns: announcing an amount of this size could spark panic and pressure the price downward. They see that the better option is to launch stablecoins backed by crypto assets without liquidating ADA from the treasury.

📉 In the market, ADA fell from ~$0.688 to ~$0.625 then bounced back to ~$0.641, but it is still under strong resistance at ~$0.645. The nearest support is in the range of ~$0.622–0.636.

The conclusion?

The decision may open a new door for Cardano's success in DeFi… or it could be a trap that shakes investors' confidence. Is it a calculated risk or a reckless move? ⏳#CardanoDebate