#CardanoDebate The Cardano debate centers around Charles Hoskinson's proposal to convert $100 million worth of ADA from the treasury into Bitcoin and native stablecoins like USDM. This move aims to address Cardano's liquidity imbalance and boost its DeFi ecosystem.

*Key Points:*

- *Stablecoin Situation*: Hoskinson believes the stablecoin shortage is "killing Cardano" and proposes converting 140 million ADA to stablecoins to enhance liquidity.

- *Potential Benefits*: This move could generate non-inflationary revenue for the treasury, attract institutional users, and increase adoption of Cardano-native assets.

- *Concerns and Criticisms*: Some community members warn that the large-scale ADA sale could intensify the token's recent decline, while others suggest alternative approaches like minting crypto-backed stablecoins.

- *Community Debate*: The proposal has sparked contrasting views within the Cardano community, with some prioritizing TVL and liquidity, while others emphasize institutional adoption and governance ¹ ² ³.

*Market Impact:*

- *Price Drop*: Cardano's ADA token dipped over 6% amid the debate, reflecting market concerns about the proposal's potential impact.

- *Institutional Recognition*: Despite current challenges, Cardano's inclusion in Nasdaq's revamped Crypto US Settlement Price Index signals growing institutional recognition ⁴ ².