#CardanoDebate

The current debate surrounding Cardano centers on its stablecoin situation and a proposal by co-founder Charles Hoskinson to convert 140 million ADA from the treasury into USDM, a fiat-backed stablecoin. This move aims to boost Cardano's DeFi liquidity and generate non-inflationary revenue for the treasury.

*Key Points of the Debate:*

- *Proposal Details*: Hoskinson believes converting 140 million ADA to stablecoins won't significantly impact the market, citing deep market liquidity. He thinks this will help Cardano's DeFi ecosystem and treasury.

- *Criticism*: Some community members, like "Cardano Whale," are concerned about potential selling pressure and the timing, given the current market downturn. A large ADA sale could intensify the token's recent decline.

- *Alternative Solutions*: Critics suggest minting a crypto-backed stablecoin using ADA and deploying it into liquidity pools alongside ADA on Cardano DEXs. This approach could bolster DeFi liquidity without heavy sell pressure.

*Market Impact:*

- *ADA Price Drop*: Cardano's ADA token dipped over 6% amid the debate, with a recent price drop to $0.6363, representing a 7.58% decrease.

- *Growing Institutional Recognition*: Despite challenges, Cardano's inclusion in Nasdaq's revamped Crypto US Settlement Price Index signals growing institutional recognition ¹ ² ³.