Charles Hoskinson of Cardano Proposes $100 Million ADA to Bitcoin and Stablecoins Swap

Overview

Charles Hoskinson, a co-founder of Cardano, has put forward a proposal to convert $100 million worth of ADA tokens into bitcoin and stablecoins to enhance the decentralized finance (DeFi) ecosystem of Cardano.

Proposal Details

Hoskinson suggested that this conversion would involve changing ADA into USDM and USDA stablecoins as well as some bitcoin.
He expressed confidence that this move would not adversely affect the market value of ADA, remarking that liquidity issues are not a concern.
His suggestions stand in contrast to the views of Frederik Gregaard, CEO of the Cardano Foundation, who believes that the Total Value Locked (TVL) is not a relevant metric for adoption.

Current State of the Market

As it stands, Cardano has approximately $356 million in total value locked, but only about $31 million of stablecoins are minted on-chain. Comparatively, Solana boasts a TVL of $9.8 billion and has $11 billion in stablecoin issuance.

Conclusion

In light of this recommendation, Hoskinson identified the stablecoin situation as detrimental to Cardano’s growth, asserting that this proposal would generate sustainable revenue and bolster Cardano’s standing within the DeFi community.