Cardano Co-founder Proposes Swapping $100 Million in ADA for Bitcoin and Stablecoins to Support DeFi

Cardano co-founder Charles Hoskinson recently stated during a livestream that he recommends converting 100 million ADA tokens into stablecoins within the Cardano ecosystem (such as USDM and USDA) and a portion into Bitcoin, in order to promote the development of Bitcoin DeFi. Responding to concerns that such a sale might impact the price of ADA, he called this “an inexperienced view” and emphasized that this move would not cause any issues.
Hoskinson hopes that this proposal will increase the ratio of stablecoin issuance to TVL from the current approximately 10% to 30%-40%. According to DefiLlama data, Cardano’s current TVL stands at $356 million, while the on-chain stablecoin issuance is only $31 million. In comparison, Solana’s TVL is $9.8 billion, with stablecoin issuance reaching $11 billion.
In a tweet, Hoskinson stated that the lag in stablecoin development is “holding Cardano back,” and that this proposal could bring “non-inflationary revenue” and drive the growth of the Cardano DeFi economy. It is worth noting that Cardano Foundation CEO Frederik Gregaard stated in March that TVL is not a metric used to measure ecosystem adoption. (CoinDesk)