According to him:
“[W]e take about a hundred million worth of ADA in the treasury and convert it to a blend of a collection of stablecoins incumbent in Cardano, so USDM, USDA, as well as ADA-backed stable synthetics like iUSD and also convert some of it to Bitcoin to prime the Bitcoin DeFi.”
“What is killing Cardano is our stablecoin situation. This would start to solve it. Generate some non-inflationary revenue for the treasury, and help build up our DeFi economy.”
However, Hoskinson noted that any such move would depend on evaluating the readiness of Cardano-based DeFi protocols and ensuring sustainable ecosystem yields.
Meanwhile, community concerns have surfaced that selling $100 million worth of ADA could negatively affect the token’s price.
He said:
“The markets are deep. We could convert 140 million ADA over a week or so without moving the market using OTCs and TWAPs. It’s a false narrative.”
Hoskinson also noted that the sale would exert minimal price pressure if appropriately executed, arguing that the perception of a large sale might cause more volatility than the sale itself.
“The markets are deep. Billions of dollars of ADA trade hands every week across the world. The belief that Cardano DeFi is bullish alone would create enough buy demand to offset a liquidation at this scale. If 100 million could move the market, Cardano would have extreme volatility.”
