Solana Co-Founder: Cardano's Proposal to Use Treasury Funds to Purchase Bitcoin is "Extremely Stupid"

BlockBeats News, June 16th, Solana Labs co-founder Anatoly Yakovenko opposed the latest proposal from the Cardano leadership to convert part of their treasury funds into Bitcoin. He stated that this idea is flawed, reflects poor treasury management, and sends a wrong message to the Cardano community. He remarked: "Projects should maintain 18-36 months of operating funds in short-term U.S. Treasuries, and that's it."

The controversy originates from a proposal made by Cardano founder Charles Hoskinson on June 13th, suggesting that the blockchain network could convert $100 million worth of ADA tokens from the treasury into Bitcoin and stablecoins. Hoskinson mentioned that the goal was to strengthen Cardano's decentralized finance (DeFi) capabilities and address issues within its stablecoin ecosystem.

Critics, however, believe the proposal signals a lack of confidence in the ADA token. Crypto trader Aaron Dishner argued that this move could be seen as Cardano admitting that Bitcoin is more valuable than its native token. The co-founder of Solana also echoed similar opinions, questioning why any protocol would need to hold Bitcoin on behalf of users. He said: "Why should a team buy and hold Bitcoin on behalf of users when users can buy and hold Bitcoin themselves?"

The proposal has sparked mixed reactions within the Cardano community, with some worrying that selling $100 million worth of ADA to purchase Bitcoin could suppress the token's price. Hoskinson dismissed these concerns, claiming that the ADA market is deep enough to absorb this fund transfer without causing a crash.