Charles Hoskinson Proposes Swapping $100M in ADA for Bitcoin and Stablecoins to Boost Cardano DeFi

Sat Jun 14 2025
Cardano founder Charles Hoskinson wants to swap $100M in ADA for Bitcoin and stablecoins to jumpstart DeFi growth. His proposal sparks debate on price impact, governance, and Cardano’s future.

Charles Hoskinson Wants to Swap 100M ADA for Bitcoin and Stablecoins

Can Bitcoin and stablecoins save Cardano DeFi? Hoskinson thinks so — and he's ready to bet 100 million on it.


🧠 The Big Idea: ADA for BTC & Stables

Cardano founder Charles Hoskinson has floated a bold plan: swap 100 million in ADA from the Cardano treasury into a mix of Bitcoin and stablecoins like USDM and USDA.

Why? To break Cardano’s DeFi stagnation and inject much-needed liquidity.

“This initiative could generate non-inflationary yield and catalyze the DeFi economy on Cardano.” — Charles Hoskinson


📉 Cardano’s DeFi Problem

Cardano has been dragging when it comes to stablecoin adoption — a critical ingredient for DeFi products like lending, yield farming, and trading.

  • Cardano stablecoin market cap: 31.6M
  • Ethereum: 124.4B
  • Cardano DeFi TVL: 278M (Rank 24)
  • Ethereum TVL: 61.7B
  • Solana TVL: 8.3B

Cardano is barely on the board. Hoskinson’s plan aims to change that — fast.


🚨 Will This Tank ADA’s Price?

Critics argue that dumping 100M worth of ADA could crash the price.

ADA is already down 6% in 24 hours, hovering near 0.60, and off 60% from its all-time high.

But Hoskinson says: chill.

“If 100M could move it significantly, Cardano would be extremely volatile, which it isn't.”

He proposes TWAP and OTC strategies to spread out the sell pressure.


⚔️ Internal Drama: Not Everyone Agrees

Hoskinson’s DeFi-first vision isn’t shared by all. Cardano Foundation CEO Frederik Gregaard says TVL isn’t everything.

“Our goal is to maintain 50% of network activity as non-financial.”

Gregaard focuses on digital identity, metadata, and long-term sustainability, while IOG (Hoskinson’s firm) wants more aggressive short-term DeFi growth.

The split reveals a deeper rift in strategy across Cardano’s three-headed leadership: Foundation, IOG, and Emurgo.


🧾 Treasury Audit, Trust Issues

Hoskinson’s timing is... interesting. His 100M plan comes right after he called for a full audit of the Cardano Foundation’s treasury amid 600M misuse allegations.

He’s not just pushing a DeFi revival — he’s also questioning where the money’s gone.

So, is this a bold financial reset — or just another power play in Cardano’s internal turf war?


🧠 TL;DR

  • Hoskinson wants to swap 100M in ADA for Bitcoin + stablecoins
  • Goal: supercharge Cardano’s stagnant DeFi ecosystem
  • Critics worry about price drops; he says it’s manageable
  • Foundation disagrees — wants focus on non-financial apps
  • Tensions rise amid treasury audit and governance drama

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