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Charles Hoskinson Proposes $100M ADA Stablecoin Move to Boost Cardano DeFi
- Charles Hoskinson of Cardano proposes converting 140 million ADA to USDM to address low stablecoin liquidity in the DeFi ecosystem.
- The proposal aims at improving liquidity on Cardano, which lags behind Ethereum and Solana in terms of stablecoin market capitalization to DeFi TVL ratio.
- Hoskinson suggested the conversion to USDM with an annual return of 5% to 10% to fill the liquidity gap, sparking mixed reactions in the Cardano community.
- Some community members believe the move could boost DeFi without market disruption, while others, like Whale, fear it could create sell pressure and market downturns.
- Hoskinson assured that solutions like OTC or TWAPs could avoid market disruption while enhancing liquidity and revenue for the treasury.
- Concerns raised by PlayfulOtter highlight potential market falls triggered by large sell volumes, amidst ADA's recent price declines.
- ADA has experienced price drops in various timeframes, with recent falls of 7.5% in 24 hours, 0.67% in seven days, 22.5% in 30 days, and 13% in 90 days.
- Despite the declines, analysts suggest a potential rebound for ADA, with predictions of reaching $10 pending factors like approval of spot ADA ETFs by the SEC.
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