{"id":181133,"date":"2025-06-13T13:04:09","date_gmt":"2025-06-13T13:04:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/181133\/"},"modified":"2025-06-13T13:04:09","modified_gmt":"2025-06-13T13:04:09","slug":"charles-hoskinson-admits-whats-killing-cardano-is-our-stablecoin-situation","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/181133\/","title":{"rendered":"Charles Hoskinson admits, &#8216;What&#8217;s killing Cardano is our stablecoin situation&#8217;"},"content":{"rendered":"<ul>\n<li>Hoskinson proposes converting 140M ADA to stablecoins to boost Cardano\u2019s DeFi liquidity.<\/li>\n<li>Critics warn the plan could trigger further ADA price drops amid current market weakness.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/ambcrypto.com\/category\/cardano-news\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">Cardano [ADA]<\/a> is facing mounting pressure in the DeFi space as concerns grow over its limited stablecoin liquidity.<\/p>\n<p> Despite favorable on-chain metrics, ADA\u2019s recent 7.58% <a href=\"https:\/\/coinmarketcap.com\/currencies\/cardano\/\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">price drop<\/a> to $0.6363 has raised eyebrows among investors.<\/p>\n<p>Charles Hoskinson defends Cardano\u2019s image<\/p>\n<p>Addressing the issue, Cardano co-founder Charles Hoskinson recently took to X (formerly Twitter) to shed light on the blockchain\u2019s stablecoin shortfall. <\/p>\n<p>He <a href=\"https:\/\/x.com\/IOHK_Charles\/status\/1933146987919974841?t=MS7IZnyhJJ6RdyldM43OBQ&amp;s=19\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">pointed out<\/a> that Cardano\u2019s stablecoin market cap relative to its DeFi total value locked (TVL) significantly trails behind other networks\u2014a gap he plans to close through a newly proposed strategy.<\/p>\n<p>He said,\u00a0<\/p>\n<blockquote>\n<p>The markets are deep. We could convert 140 million ada over a week or so without moving the market using OTCs and TWAPs. It\u2019s a false narrative.\u00a0<\/p>\n<\/blockquote>\n<p>Hoskinson added,\u00a0<\/p>\n<blockquote>\n<p>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.<\/p>\n<\/blockquote>\n<p>To tackle the shortage of stablecoins on Cardano, Charles Hoskinson suggested turning 140 million ADA from the treasury into USDM, the blockchain\u2019s fiat-backed stablecoin.<\/p>\n<p>He believes this move could help bridge the liquidity gap in Cardano\u2019s DeFi ecosystem while also generating non-inflationary income for the treasury.<\/p>\n<p>Critics take a jab at Hoskinon\u2019s plan of action<\/p>\n<p>However, the plan has stirred debate within the community. <\/p>\n<p>Some, like the prominent pseudonymous user \u201cCardano Whale\u201d, have expressed concern that the market might struggle to withstand the selling pressure from such a large ADA conversion.<\/p>\n<p>Other critics also argue that the timing could backfire, given the broader market downturn.<\/p>\n<p> One prominent community member even cautioned that announcing a large-scale ADA sale now could intensify the token\u2019s recent decline, which has already seen a 5% dip in the past 24 hours.<\/p>\n<p>But what\u2019s the alternative?<\/p>\n<p>As an alternative, many critics of Hoskinon\u2019s plan have suggested minting a crypto-backed stablecoin using ADA, then deploying it into liquidity pools alongside ADA on top of Cardano DEXs. <\/p>\n<p>This approach, they argue, would bolster DeFi liquidity without sparking heavy sell pressure, offering a more balanced path forward during uncertain market conditions.<\/p>\n<p>This followed Cardano\u2019s <a href=\"https:\/\/ambcrypto.com\/cardano-joins-nasdaq-crypto-index-a-major-milestone-for-wall-street-exposure\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">inclusion<\/a> in Nasdaq\u2019s revamped Crypto US Settlement Price Index, signaling growing institutional recognition despite current ecosystem challenges.<\/p>\n<p>\t\t\t\t\t\t\t\t\t\t\tPrevious: <a href=\"https:\/\/ambcrypto.com\/hyperliquid-tvl-explodes-can-hype-use-this-to-defy-the-44-wall-again\/\" rel=\"next noopener\" data-wpel-link=\"internal\" target=\"_blank\">HyperLiquid TVL explodes \u2013 Can HYPE use this to defy the $44 wall again?<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n<p>\t\t\t\t\t\t\t\t\t\t\tNext: <a href=\"https:\/\/ambcrypto.com\/hyperliquid-the-first-meaningful-competitor-to-binance-jump-trading-cio\/\" rel=\"prev noopener\" data-wpel-link=\"internal\" target=\"_blank\">Hyperliquid, \u2018the first meaningful competitor\u2019 to Binance: Jump Trading CIO<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Hoskinson proposes converting 140M ADA to stablecoins to boost Cardano\u2019s DeFi liquidity. Critics warn the plan could trigger&hellip;\n","protected":false},"author":2,"featured_media":181134,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[52,51,16,15],"class_list":{"0":"post-181133","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ambcrypto","9":"tag-business","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114676201248124459","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/181133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=181133"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/181133\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/181134"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=181133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=181133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=181133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}