On June 16, Solana Labs co-founder Anatoly Yakovenko opposed the Cardano leadership's latest proposal to convert some of the treasury funds into Bitcoin. He said the idea was wrong, reflecting mismanagement of the treasury and sending the wrong message to the Cardano community. "The project team should keep the 18-36 months of running capital in short-term U.S. Treasury bonds, and that's it," he said. The controversy stems from a suggestion made by Cardano founder Charles Hoskinson on June 13 that the blockchain network could convert $100 million worth of ADA tokens in the treasury into Bitcoin and stablecoins. Hoskinson said the goal is to strengthen Cardano's decentralized finance (DeFi) capabilities and address issues in its stablecoin ecosystem. But critics argue that the proposal shows a lack of confidence in the ADA token. Crypto trader Aaron Dishner said the move could be seen as Cardano's acknowledgment that Bitcoin is more valuable than its native token. The Solana co-founder expressed a similar sentiment, questioning why any protocol needs to hold bitcoin on behalf of users, saying, "Why should you have a team buy and hold bitcoin for users when they can buy and hold it themselves?" The proposal sparked mixed reactions in the Cardano community, with some fearing that selling $100 million of ADA to buy Bitcoin could weigh on the token's price. Hoskinson dismissed these concerns, saying that the ADA market is deep enough to absorb this transfer of funds without causing a crash.
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Solana co-founder: Cardano's proposal to use treasury funds to buy Bitcoin is "very stupid"
On June 16, Solana Labs co-founder Anatoly Yakovenko opposed the Cardano leadership's latest proposal to convert some of the treasury funds into Bitcoin. He said the idea was wrong, reflecting mismanagement of the treasury and sending the wrong message to the Cardano community. "The project team should keep the 18-36 months of running capital in short-term U.S. Treasury bonds, and that's it," he said. The controversy stems from a suggestion made by Cardano founder Charles Hoskinson on June 13 that the blockchain network could convert $100 million worth of ADA tokens in the treasury into Bitcoin and stablecoins. Hoskinson said the goal is to strengthen Cardano's decentralized finance (DeFi) capabilities and address issues in its stablecoin ecosystem. But critics argue that the proposal shows a lack of confidence in the ADA token. Crypto trader Aaron Dishner said the move could be seen as Cardano's acknowledgment that Bitcoin is more valuable than its native token. The Solana co-founder expressed a similar sentiment, questioning why any protocol needs to hold bitcoin on behalf of users, saying, "Why should you have a team buy and hold bitcoin for users when they can buy and hold it themselves?" The proposal sparked mixed reactions in the Cardano community, with some fearing that selling $100 million of ADA to buy Bitcoin could weigh on the token's price. Hoskinson dismissed these concerns, saying that the ADA market is deep enough to absorb this transfer of funds without causing a crash.