Cardano's Hoskinson proposes to exchange 100 million Dollar worth of ADA for Bitcoin and stablecoins.

## Enhancing the appeal of Cardano

Charles Hoskinson, the founder of Cardano, held a live stream on YouTube on the 13th and made proposals regarding the liquidity and finances of Cardano.

Mr. Hoskinson proposed to exchange 100 million dollars (approximately 14.4 billion yen) worth of cryptocurrency ADA for Bitcoin and multiple stablecoins. He is looking to strengthen liquidity and finances by utilizing Bitcoin’s DeFi and stablecoins.

During the live broadcast, we first compared the amount of stablecoins issued on Cardano with the ratio of the total value of cryptocurrencies locked for operations, known as “TVL (Total Value Locked).” It was pointed out that compared to Ethereum and Solana, Cardano has a lower issuance of stablecoins.

Additionally, it was pointed out that the funding for the ecosystem consists of newly issued ADA and fee income, and that there are no means to generate returns. It was explained that government-related funds in Norway and Abu Dhabi are generating returns through management. The title of this video is “Cardano - Decentralized Government-Related Fund.”

Concerns about selling pressure

While there are voices supporting this proposal, there are also criticisms that it could lead to a decline in the price of ADA if implemented.

Mr. Hoskinson claimed that this proposal could be implemented without affecting the price. He stated that with the liquidity of ADA, it is possible to absorb selling pressure without significantly impacting the price by taking a few days.

On the 14th, they also responded to criticism on X. On X, it is claimed that people who have never experienced a large sale of ADA are using the generative AI “ChatGPT” to assert that all sales lead to a significant drop in price.

A specific analysis example by ChatGPT has been published on the development platform “GitHub” indicating that if Ada is replaced with the stablecoin “USDM”, there is a high possibility of a price decline in the short term.

Mr. Hoskinson also claims that in Cardano’s DeFi, “small” sales can be offset. He also mentioned that considering institutional demand, OTC trading could be utilized.

What is OTC trading?

This refers to transactions conducted on a one-to-one basis between a seller and a buyer. “OTC” stands for “Over The Counter.”

In his post on X, Mr. Hoskinson stated that we should question where the yields come from and how we can leverage that to increase capital inflows, emphasizing that this proposal does not negatively impact the price of ADA but rather enhances the attractiveness of the ecosystem.

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