#Cardano founder Charles Hoskinson has come under heavy criticism following his recent strategy of converting a portion of the ADA treasury into Bitcoin.
Initially, Hoskinson proposed a strategy to convert $100 million worth of ADA in treasury into USDM stablecoin and Bitcoin. At the time, he suggested that the fund could generate an annual return of 5-10% and boost Cardano’s DeFi and stablecoin ecosystems.
According to Hoskinson, the annual yield could be used to repurchase ADA and replenish the treasury, which currently holds roughly 1.7 billion ADA.
He suggested that if the initiative proves successful, the ecosystem team could implement the strategy annually, potentially growing the Bitcoin and stablecoin treasuries to $1 billion each, augmenting Cardano’s financial reserves.
“This sets us up for great returns and a pretty stable floor for the ecosystem,” Hoskinson remarked in a viral video.
Sunny Decree Trolls Hoskinson Over Ethereum and Cardano Ties
Bitcoin investor Sunny Decree also took a jab at Hoskinson. He sarcastically outlined a pattern he claims Hoskinson used to build wealth.
The alleged pattern involves premining Ethereum, pitching its real-world use cases to attract investors, selling the ETH holdings to buy Bitcoin, and then repeating the process with Cardano.
Hoskinson, one of Ethereum’s co-founders, left the project in 2014 and launched Cardano three years later. Following Hoskinson’s Bitcoin investment proposal, Sunny criticized investors still holding ADA, calling them “blind.”
Crypto Author Criticizes Hoskinson
Terence Michael, author of “Proof Of Money: The Big Idea Behind Bitcoin,” also slammed the Cardano founder for planning to sell ADA for BTC. Michael issued a wake-up call to investors, emphasizing that the primary goal of most crypto projects is to sell their tokens rather than position these assets as stores of value.
