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Solana Founder Criticizes Cardano’s Financial Plan
“Exchanging ADA for BTC” Sparks Community Divisions
Solana Founder Criticizes Cardano’s Financial Plan
On June 13, Charles Hoskinson proposed an idea suggesting that approximately $100 million worth of ADA be allocated from Cardano’s treasury to purchase Bitcoin and stablecoins, in order to enhance the network’s liquidity and stablecoin infrastructure in the DeFi space. However, this move has led to skepticism among some community members and industry professionals regarding the apparent lack of confidence in the native token, ADA.
Anatoly Yakovenko expressed his views on June 16 via the X platform, stating that blockchain projects should keep their funds in short-term U.S. Treasury securities to maintain operational security, rather than investing treasury assets in other crypto assets.
He pointed out that projects should maintain 18 to 36 months of reserve funds stored in short-term Treasury securities, without engaging in excessive operations. Furthermore, he raised the question:
“Why would anyone want the development team to buy Bitcoin for them when they can buy it themselves?”
“Exchanging ADA for BTC” Sparks Community Divisions
In fact, aside from Anatoly Yakovenko, many others within the Cardano community have also expressed skepticism towards this idea. Cardano insists that this proposal aims to address the current reality of insufficient liquidity for stablecoins within the ecosystem. Charles Hoskinson pointed out that the total amount of stablecoins on Cardano is currently around $33 million, significantly lagging behind other Layer 1 ecosystems. He believes that without adopting more aggressive financial strategies, Cardano may struggle to remain competitive in the decentralized finance market.
However, this proposal has also raised concerns in the market about potential pressure on the price of ADA. Some community members are worried that if $100 million worth of ADA were to enter the market in exchange for Bitcoin, it could exert downward pressure on the token’s price. In response, Charles Hoskinson stated that the market depth of ADA is sufficient to absorb this transaction, and that the overall plan has been carefully evaluated.
Facing criticism, Charles Hoskinson asserted that he would not back down and emphasized that the current issues should be addressed pragmatically rather than getting caught up in personal attacks. He wrote:
“We have solutions. Calling me arrogant, a cancer cell or a dictator does not solve the objective challenges that exist.”
He also revealed that a formal proposal is expected to be presented by a joint team during the annual Cardano ecosystem conference, Rare Evo.
