#CardanoDebate
Cardano Debate – Will the ADA treasury turn into a liquidity gateway or a volatility trap?
🚨 Will they save DeFi or sink ADA?
Cardano (ADA) 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 move will invigorate decentralized finance projects, without direct harm to the price, if executed wisely through OTC deals or tools like TWAP.
⚠️ However, the opposing team warns: announcing such a large amount may trigger panic and pressure the price downward. They see it as better to launch stablecoins backed by crypto assets without liquidating ADA from the treasury.
📉 In the market, ADA dropped from ~$0.688 to ~$0.625 then rebounded 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 avenue for Cardano's success in DeFi… or be a trap that shakes investor confidence. Is it a calculated risk or a reckless move? ⏳