Solana Labs co-founder Anatoly Yakovenko has harshly criticized Cardano’s proposal to buy Bitcoin from its treasury.
The proposal, presented by Cardano founder Charles Hoskinson on June 13, involves converting $100 million worth of ADA coins in the Cardano treasury into Bitcoin and stablecoins. However, Yakovenko said the idea was “very stupid,” indicating mismanagement of the treasury and sending the wrong message to the Cardano community.
According to Yakovenko, projects only need to hold enough funds in short-term US Treasury bonds to cover their operational expenses for 18 to 36 months. Yakovenko said that turning to different assets such as Bitcoin is unnecessary and wrong, and said, “If users want to buy Bitcoin, they can already buy it themselves. There is no need for the project to hold Bitcoin on behalf of users.”
Related News: XRP Experiences a First-Time Event in Its History – Unusual Data Coming In
Hoskinson argued that the proposal was made to strengthen Cardano’s decentralized finance (DeFi) infrastructure and solve some problems in the stablecoin ecosystem. However, some critics believe that the move shows a lack of trust in the ADA coin. Crypto investor Aaron Dishner said that this plan implicitly implies that Cardano admits that Bitcoin is more valuable than ADA.
Opinions on the proposal have been mixed in the Cardano community, with some users concerned that the $100 million ADA sale could negatively impact the token’s price. However, Hoskinson dismissed these concerns, stating that the ADA market is deep enough to absorb the transfer without any crashes.
As discussions continue within the Cardano community, it is eagerly awaited whether the proposal will be implemented and how the project’s governance process will be followed.
*This is not investment advice.
Continue Reading: Solana Founder Anatoly Yakovenko Blasts Rival Altcoin: “What They’re Doing Is Stupid”
