♦ Will the ADA treasury turn into a gateway for liquidity or a trap for volatility .. ?
🔸 Will they save DeFi or drown ADA .. ?
Cardano (ADA) has fallen 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 supportive team, led by Cardano founder Charles Hoskinson, believes that this step will revitalize decentralized finance projects without a direct harm to the price if executed intelligently through OTC deals or tools like TWAP.
• However, the opposing team warns: announcing such a large amount may incite panic and pressure the price downward, and they believe it is 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 facing strong resistance at ~$0.645. The nearest support is in the range of ~$0.622–0.636.
🔸In summary: ..
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 .. ?
