#CardanoDebate Charles Hoskinson's proposal to use 140 million ADA (~$100M) from the treasury to buy BTC and native Cardano stablecoins is an ambitious and strategic move, but also polarizing. Here I offer you a balanced analysis

🔍 Pros of the proposal:

1. Diversification of the treasury: Having only ADA in the treasury implies high exposure to the risk of a single asset. By purchasing BTC and stablecoins like USDM, USDA, and iUSD, volatility is reduced and resilience is added to the ecosystem.

2. Boost to the DeFi ecosystem: By using native stablecoins, liquidity and legitimacy are provided. This can attract more developers and users to the Cardano ecosystem, enhancing its utility and real demand.

3. Signal of institutional maturity: It demonstrates that Cardano is willing to take on responsibilities similar to those of a mature DAO that manages a portfolio and supports its internal economy.

⚠️ Cons and risks:

1. ADA sale generates downward pressure: Moving a large amount of ADA to buy other assets could have been interpreted by the market as a lack of confidence in its own currency, which explains the 6% drop.

2. Governance risk: The process of how these decisions are approved (who votes, how it is audited, whether there is real transparency) remains a sensitive issue. Without solid governance, these moves can seem arbitrary or centralized.

3. Current market conditions: At an uncertain time for altcoins and with high BTC dominance, using the treasury at this point may be seen as imprudent if not accompanied by a clear and long-term strategy.

📈 Long-term impact on the value of ADA?

Positive, if the plan is implemented transparently, DeFi in Cardano is strengthened, and the real use of ADA and stablecoins within the ecosystem is encouraged. More activity = more demand for ADA as a base token for fees and participation.