A naukri.com initiative
Zycrypto
1d
138
Image Credit: Zycrypto
Cardano Founder Hoskinson Proposes Swapping $100 Million Of ADA For Bitcoin And Stablecoins
- Cardano co-founder Charles Hoskinson proposes converting $100 million worth of ADA tokens into Bitcoin and stablecoins to enhance liquidity for Cardano's DeFi ecosystem.
- The proposal aims to address Cardano's low stablecoin-to-DeFi ratio, currently under 10%, compared to Ethereum and Solana with 190% and 110% ratios, respectively.
- Hoskinson believes diversifying treasury holdings could help boost Cardano's stablecoin issuance and total value locked to around 33%-40%.
- He dismissed concerns that a $100 million sale would impact ADA's price significantly, stating that such a transaction could be absorbed by Cardano's trading volume.
- The proposal involves implementing yield-generating instruments and governance structures, with an elected board managing a decentralized Cardano sovereign wealth fund.
- Income generated from the proposal could be used to buy back ADA, potentially increasing demand for the token and boosting its market price.
- ADA has dropped by 7% to $0.6377 in the last 24 hours amidst broader market declines following Israel's airstrikes on Iran.
Read Full Article
8 Likes
For uninterrupted reading, download the app