Charles Hoskinson Wants To Inject 100 Million Into Cardano’s DeFi

Cardano is launching a strategic offensive in the decentralized finance space. Charles Hoskinson, its iconic founder, proposes investing 100 million dollars in ADA to energize the blockchain’s DeFi ecosystem. But will this ambitious initiative be enough to reposition Cardano against an increasingly aggressive and innovative competition?

An Investment Strategy to Revitalize the Cardano Ecosystem

Charles Hoskinson, the founder of Cardano, has just unveiled a proposal that is already sparking debate within the crypto community. The visionary behind the world’s third-largest blockchain wants to mobilize 100 million dollars in ADA tokens from the Cardano Foundation’s treasury.

The objective? To inject new momentum into the platform’s native DeFi ecosystem.

This initiative is structured around a detailed plan outlined in a 40-page document that remains confidential. The strategy includes acquiring diversified assets, notably bitcoin and Cardano-native stablecoins such as USDM, USDA, and IUSD.

“As an ecosystem, we need to be ready to invest in ourselves,” Hoskinson states, emphasizing the need for foundations to set an example.

Moreover, this approach follows a precise economic logic. It aims to significantly increase the issuance ratio of stablecoins relative to the total value locked (TVL), targeting between 30 and 40%.

This threshold, he says, corresponds to standards observed in mature DeFi ecosystems, a key condition according to him to promote the adoption of these stablecoins on markets and trading platforms.

Operationally, the strategy is designed to limit volatility risks. The sale of ADA would be spread over a period of 30 to 90 days, using proven financial tools such as TWAP (time-weighted average price) or over-the-counter (OTC) transactions.

This method ensures a gradual execution without shocking the market. Recall that the current ADA price is 0.63 dollars, far from its all-time high of 3.10 dollars.

A Calculated Bet Amid Market Criticism

Reactions within the crypto community reflect the tension surrounding this project. On one hand, some ADA holders fear a negative impact on the token price, believing that such a large sale could exert harmful selling pressure.

On the other hand, Charles Hoskinson dismisses these critiques with strong technical arguments. He reminds that “hundreds of millions of dollars worth of ADA change hands every day“, stressing the market depth and mechanisms in place to absorb any sudden fluctuation.

This announcement comes at a particularly favorable moment for Cardano. The latest data shows that the open interest on ADA futures recently surpassed 900 million dollars, a record reflecting a significant resurgence of confidence from traders, notably institutional ones.

At the same time, trading volume jumped 58% in 24 hours, exceeding one billion dollars — a strong signal of the solidity of ADA market liquidity.

Among project supporters, enthusiasm is palpable. HOSKY, a prominent Cardano community figure, praises a bold initiative to strengthen native stablecoins like USDM, often overlooked by industry giants.

“They are local, censorship-resistant, and aligned with Cardano’s core values“, he asserts.

Other voices, more measured, express their support while calling for caution. Rami, creator of memecoins on Cardano, advocates for a more gradual implementation to limit price impact and ensure sustainable ecosystem support.

By injecting such a large amount into its own infrastructure, Cardano positions itself against the wait-and-see approaches of other blockchains. If successfully executed, this strategy could become a model for active engagement by crypto foundations in developing their ecosystems.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.