#CardanoDebate

Cardano Debate – Will the ADA treasury turn into a liquidity gateway or a trap for volatility?

🚨 Are they saving DeFi or sinking ADA?

The Cardano (ADA) currency has dropped about 6% after a heated debate over a proposal to withdraw 100–140 million ADA from the project's treasury to support liquidity in stablecoins.

🔍 The supporting team, led by Cardano founder Charles Hoskinson, believes that this step will invigorate decentralized finance projects, without direct harm to the price, if executed smartly through OTC deals or tools like TWAP.

⚠️ However, the opposing team warns: announcing an amount of this size could trigger panic and pressure the price downwards. They argue that the best approach is to launch stablecoins backed by crypto assets without liquidating ADA from the treasury.

📉 In the market, ADA dropped from ~$0.688 to ~$0.625 and then bounced back to ~$0.641, but it is still under strong resistance at ~$0.645. The nearest support is in the range of ~$0.622–0.636.

The conclusion?

The decision could open a new door for Cardano's success in DeFi… or it could be a trap that shakes investor confidence. Is it a calculated risk or a reckless step? ⏳