#CardanoDebate #CardanoDebate

🔍 Analysis: The Controversial Proposal by Hoskinson for the Cardano (ADA) Treasury

The founder of Cardano, Charles Hoskinson, has sparked debate by suggesting using 140 million ADA (≈$100M) from the project's treasury to buy BTC and native stablecoins (USDM, USDA, IUSD) in order to boost the DeFi ecosystem. The market reaction was immediate: ADA fell by 6%, reflecting the division within the community.

📌 Pros and Cons of the Proposal

✅ In favor:

- Strengthening DeFi in Cardano: Reserves in BTC and stablecoins could attract more liquidity and projects.

- Strategic diversification: Reduces exclusive dependence on ADA and mitigates volatility risks.

- Signal of maturity: Shows willingness to innovate in treasury management.

⚠️ Against:

- Centralization risk: Who will control these reserves? Concerns about transparent governance.

- Massive sale of ADA: The market might interpret it as a lack of confidence in the asset itself.

- Market conditions: BTC and stablecoins also face macroeconomic pressures.

💡 Impact on ADA Price

- Short term: Volatility due to uncertainty and possible sales from discontented holders.

- Long term: If the strategy attracts more adoption, it could revalue ADA. #CardanoDebate