Cardano Founder Comes Under Fire Over Plan to Swap ADA for Bitcoin
The post Cardano Founder Comes Under Fire Over Plan to Swap ADA for Bitcoin appeared on BitcoinEthereumNews.com. Cardano founder Charles Hoskinson has come under heavy criticism following his current strategy of converting a part of the ADA treasury into Bitcoin. Hoskinson proposed a strategy to convert $100 million worth of ADA in treasury into USDM stablecoin and Bitcoin. At the time, he recommended that the fund could generate a yearly return of 5-10% and increase Cardano’s DeFi and stablecoin communities. According to Hoskinson, the yearly yield might be used to redeem ADA and replenish the treasury, which currently holds roughly 1.7 billion ADA. He recommended that if the effort shows effective, the community group might execute the technique yearly, possibly growing the Bitcoin and stablecoin treasuries to $1 billion each, enhancing Cardano’s monetary reserves. “This sets us up for fantastic returns and a quite steady floor for the ecosystem,” Hoskinson mentioned in a viral video.
Crypto Stakeholders Criticize Him While several Cardano lovers supported the proposition, others slammed Hoskinson for preparing to convert ADA into Bitcoin. Popular crypto financier Anthony Pompliano was among the critics. According to Pompliano, Hoskinson implicitly confessed that ADA cannot “hold water” or outperform Bitcoin over time. He also suggested that Hoskinson’s strategy implied that the only way to create long-term economic worth was to sell ADA from the treasury and buy Bitcoin. “This suggests that the altcoin creator understands that Bitcoin is never going away,” Pompliano said.
He even more stressed that Hoskinson’s proposal mirrors the “speculative attack” idea promoted by Bitcoin entrepreneur Pierre Rochard in 2014. The idea includes companies selling their assets to obtain Bitcoin, thus promoting its adoption. In Hoskinson’s case, Pompliano noted that the Cardano creator intends to offer ADA from the treasury in exchange for Bitcoin. He also highlighted that the significant gains recorded by Bitcoin-focused treasury companies, such as Metaplanet, have become too substantial to ignore. Data from Metaplanet’s website shows that the price of the company’s stock has grown 9,610% since it first acquired Bitcoin in April 2024.
The share price has increased from ¥ 19 ($ 0.13) to ¥ 1,845 ($ 12.74) within this period. As a result, Pompliano suggested that Metaplanet’s remarkable growth may have inspired Hoskinson’s proposal to convert a part of the ADA treasury to Bitcoin.
Sunny Decree Trolls Hoskinson Over Ethereum and Cardano Ties Bitcoin investor Sunny Decree also took a jab at Hoskinson. He sarcastically outlined a pattern he claims Hoskinson used to build wealth. The alleged pattern includes premining Ethereum, pitching its real-world use cases to attract investors, selling the ETH holdings to purchase Bitcoin, and then repeating the process with Cardano. Hoskinson, among Ethereum’s co-founders, left the project in 2014 and launched Cardano three years later. Following Hoskinson’s Bitcoin investment proposal, Sunny criticized investors still holding ADA, calling them “blind.”
Crypto Author Criticizes Hoskinson Terence Michael, author of “Proof Of Money: The Big Idea Behind Bitcoin,” also knocked the Cardano creator for preparing to offer ADA for BTC. Michael published a wake-up call to investors, stressing that the primary objective of most crypto projects is to sell their tokens rather than position these assets as stores of value. He urged investors to imagine a scenario in which Bitcoin’s pseudonymous founder, Satoshi Nakamoto, sells BTC to buy ADA. The crypto author emphasized that Hoskinson does not just plan to swap ADA for BTC but aims to build a Bitcoin treasury. However, Hoskinson has largely disregarded these criticisms, as he remains focused on expanding Cardano’s DeFi and stablecoin ecosystem. Earlier, he dismissed concerns about the potential impact of the sale on ADA’s price. He suggested that the ADA sale would be handled through over-the-counter (OTC) and time-weighted average prices (TWAPs), which would shield the token from any possible price impact.
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