Charles Hoskinson Proposes Converting $100 Million ADA to Bitcoin and Stablecoins
Charles Hoskinson, co-founder of Cardano, proposed converting $100 million worth of ADA tokens into a mix of stablecoins and bitcoin. He mentioned this during a YouTube live stream, stating:
- The conversion aims to enhance the ratio of stablecoin issuance and total value locked (TVL) from about 10% to 30%-40%.
- Total TVL on Cardano is currently $356 million, with only $31 million in stablecoins minted on-chain.
- In comparison, Solana has $9.8 billion in TVL and $11 billion in stablecoins minted.
- Hoskinson criticized concerns that such a sale would negatively impact ADA's price, labeling them as "inexperienced." He asserted the sale "would not cause any problems at all."
- He stated the proposal could generate "non-inflationary revenue" and strengthen the Cardano DeFi economy.
His views contrast with those of Cardano Foundation CEO Frederik Gregaard, who indicated that TVL is not a key metric for adoption.