According to PANews, Solana co-founder Anatoly Yakovenko has publicly criticized Cardano's proposal to convert $100 million of its treasury funds into Bitcoin and stablecoins, calling the decision "extremely foolish." Yakovenko suggested that project teams should only hold short-term government bonds for 18-36 months as emergency funds, questioning the need to hold Bitcoin on behalf of users.
The controversy stems from Cardano founder Charles Hoskinson's proposal on June 14, aimed at enhancing the liquidity of stablecoins within its DeFi ecosystem. The community expressed concerns that a large-scale sale of ADA could negatively impact its price. However, Hoskinson argued that the market depth is sufficient to absorb the selling pressure and highlighted that the current stablecoin volume on the Cardano blockchain is only $33 million, which poses a threat to the ecosystem's development. The proposal is set to be presented at the "Rare Evo Annual Event."