Cardano founder weighs selling $100 million in ADA for Bitcoin and stablecoins
Charles Hoskinson, co-founder of Cardano, has floated the idea of converting as much as $100 million in ADA tokens from the Cardano treasury into bitcoin (BTC) and stablecoins.
Charles Hoskinson, co-founder of Cardano, has floated the idea of converting as much as $100 million in ADA tokens from the Cardano treasury into bitcoin (BTC) and stablecoins. This proposal is aimed at giving a solid boost to DeFi growth on the Cardano network.
During a YouTube livestream, Hoskinson proposed converting the amount into a mix of Cardano-native stablecoins, such as USDM and USDA, with some of it in bitcoin. The goal: to spur bitcoin-based DeFi within the Cardano ecosystem.
No impact on ADA price, says Hoskinson
Critics voiced concerns about the impact of a $100 million sale on ADA, but Hoskinson clearly disagreed. He called the critics "inexperienced" and stressed that such a move would "not cause any problems at all" for the market.
According to Hoskinson, the proposal aims to lift the ratio of stablecoin issuance to the total value locked (TVL) in DeFi to 30%–40%. Currently that figure hovers around 10%.
Lag behind Solana
Data from DeFiLlama shows Cardano currently has a TVL of $356 million, with only $31 million in stablecoins issued on-chain. By comparison: Solana has a whopping $9.8 billion in TVL and $11 billion in issued stablecoins.
On X (formerly Twitter), Hoskinson called the current stablecoins situation on Cardano "a problem that is killing the ecosystem." He believes his proposal offers a way to generate non-inflationary revenue and significantly strengthen Cardano's DeFi landscape.
