Cardano Founder Announces $100 Million Bitcoin Buy In Shocking Move To Prop Up ADA Price | Bitcoinist.com
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Charles Hoskinson has made an interesting proposal in a bid to boost Cardano’s DeFi...
content, reviewed by leading industry experts and seasoned editors. Ad Disclosure
Charles Hoskinson has made an interesting proposal in a bid to boost Cardano’s DeFi ecosystem. The Cardano founder proposed creating a sovereign wealth fund, which could include up to $100 million worth of Bitcoin, potentially sparking an ADA price surge.
Cardano Founder Proposes Bitcoin Purchase To Boost ADA Price
In a recent podcast, the Cardano founder proposed the conversion of 5% to 10% of the treasury into assets like Bitcoin and stablecoins. Hoskinson suggested that this move is unlikely to negatively impact the ADA price but rather serve as a catalyst for a price surge. This proposal forms part of the move to create a decentralized Sovereign Wealth Fund for Cardano’s DeFi ecosystem.
Hoskinson further explained that this Sovereign Wealth Fund can be used to generate yields, while they will use the proceeds to purchase more Cardano and boost the ADA price. Over time, he believes they will be able to replenish the ADA, which they initially converted to Bitcoin and other crypto assets. The Cardano founder noted that they could continue this strategy on an annualized basis if it is successful.
He envisions that over the next five to ten years, they could potentially grow to become a billion-dollar stablecoin and Bitcoin treasury to augment the ADA price in the treasury. The Cardano founder remarked that this sets them up for great returns and a stable floor for the ecosystem.
Besides boosting the ADA price, Hoskinson also highlighted how this move could put Cardano on par with the likes of Solana and Ethereum. He noted that Ethereum and Solana are ahead in terms of stablecoin-to-TVL ratios, which enables them to lead in decentralized finance (DeFi). However, with this conversion, Cardano could increase DeFi activity on the network and ultimately increase its total value locked (TVL).
Comments On The Proposal
In an X post, a prominent Cardano community member, ‘Cardano Whale’, stated that they cannot support the 140 million sell pressure in current market conditions. The community member is apprehensive about how such a sale could negatively impact the ADA price. However, Cardano Whale acknowledged that this move could strengthen the Cardano DeFi ecosystem “significantly.”
The community member further remarked that such a sale is more appropriate when the ADA price is flying high and has turned, and then everyone has resigned to a new bear market. In response, the Cardano founder stated that the markets are deep, suggesting that such a sale is unlikely to impact the price.
Charles Hoskinson added that they could convert 140 million ADA over a week or so without moving the market using over-the-counter (OTC) and time-weighted average price (TWAP) strategies.
At the time of writing, the ADA price is trading at around $0.64, up almost 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Shutterstock, chart from Tradingview.com
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Scott Matherson is a leading crypto writer at Bitcoinist, who possesses a sharp analytical mind and a deep understanding of the digital currency landscape. Scott has earned a reputation for delivering thought-provoking and well-researched articles that resonate with both newcomers and seasoned crypto enthusiasts. Outside of his writing, Scott is passionate about promoting crypto literacy and often works to educate the public on the potential of blockchain.
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