Charles Hoskinson, founder of Cardano, issued a heavy statement. His proposal is to use about 100 million dollars in ADA from the treasury to buy stablecoins from the network itself, such as USDM, USDA, and IUSD, as well as a stake in Bitcoin. The idea is simple on paper: increase liquidity, strengthen Cardano's DeFi, and make the ecosystem more competitive. According to him, this does not drop the price, because it could be done through TWAP, OTC, or other methods that the market absorbs without generating direct impact.
However, in practice, the market did not react that well. ADA plummeted about 6% after the announcement, and whales have already dumped over 170 million in ADA. The community was quite divided. Some think it is bold, strategic, and even necessary to unlock the network's potential. But others see too much risk, question if this is the best moment, and call for more caution.
If it works, it could be a turning point for Cardano's DeFi. If it goes wrong, it becomes pressure on the price and more strain for the community. Everything is in the details of execution.
