#CardanoDebate

The proposal to convert a large portion (140 million ADA) of the treasury to purchase Bitcoin and local stablecoins (such as USDm, USDA, IUSD) raises fundamental questions about Cardano's long-term strategy.

On the positive side:

1. Enhancing liquidity in Cardano DeFi: Injecting stablecoins will create the immediate liquidity necessary for the growth of decentralized applications (DApps), attracting developers and users and making the ecosystem more attractive and competitive with other chains.

2. Diversifying the treasury: Holding Bitcoin, as a well-established digital asset, can serve as a stabilizing hedge for the treasury in the long term, especially during periods of ADA price volatility, which may enhance institutional investor confidence.

The concerns are legitimate:

1. Straying from the original vision? Cardano was built on a rigorous scientific philosophy with a focus on scalability, security, and sustainability. Diverting treasury funds (primarily funded by ADA holders) to purchase external assets (especially Bitcoin) raises the question: Does this serve the core of Cardano's technological mission, or is it a shift towards a purely financial strategy?

2. Negative market signals: The immediate drop in the price of ADA following the announcement reflects investor concerns that this move may indicate weakness or a need for unconventional strategies, rather than relying on the strength of technology and organic growth.