Charles Hoskinson, co-founder of Cardano, has proposed selling $100 million worth of ADA tokens to invest in Bitcoin and stablecoins. During a recent YouTube live stream, he emphasized that this move aims to improve Cardano's DeFi standing by increasing the stablecoin issuance ratio from around 10% to approximately 30-40%. The total value locked (TVL) in Cardano currently sits at $356 million, with only $31 million in stablecoins, in stark contrast to Solana's $9.8 billion in TVL. Hoskinson defended the proposal amid skepticism, asserting that the sale wouldn't adversely impact ADA's price and criticized those doubting the plan as "inexperienced." He believes enhancing stablecoin liquidity is crucial for Cardano's growth in DeFi, contrasting with Cardano Foundation CEO Frederik Gregaard’s perspective that the TVL metric isn’t a key indicator for adoption. The proposal raises significant questions about the future direction of Cardano's DeFi strategy and its potential impact on the ADA token value.
Cardano's Charles Hoskinson Proposes $100M ADA Conversion to Boost DeFi
Charles Hoskinson suggests converting $100M ADA into Bitcoin and stablecoins to enhance Cardano's DeFi ecosystem, addressing critics of the move.
Jamie Bennett
Crypto Analyst
5 min read
39,064
Analysis
Market Sentiment
Bearish
Neutral
Bullish
News Impact
8/10
Credibility: 8/10
Trading Recommendation
ADA
ADA
BUY
Entry Price
$1.25
Confidence
70%
Stop Loss
$1.15
Take Profit
$1.4 - $1.5
The proposal to sell $100M in ADA for Bitcoin and stablecoins is seen as a bullish move for Cardano's growth in DeFi.
