Solana co-founder Anatoly Yakovenko has criticized Cardano's proposal to convert $100 million of its ADA treasury into Bitcoin and stablecoins, labeling the move as "extremely stupid." Yakovenko argues that Cardano should instead hold 18-36 months of short-term government bonds as emergency funds, questioning the necessity of holding Bitcoin for users.
The proposal, introduced by Cardano founder Charles Hoskinson on June 14, aims to enhance the liquidity of Cardano's DeFi ecosystem stablecoins. However, the community is concerned that a large-scale sell-off of ADA could negatively impact its price. Hoskinson contends that the market depth can handle the selling pressure, noting that Cardano's current on-chain stablecoin size is only $33 million, which he believes is insufficient for ecosystem development.
Solana Co-founder Criticizes Cardano's $100M ADA-to-Bitcoin Plan
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