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

On June 16th, Anatoly Yakovenko, a co-founder of Solana Labs, opposed the latest proposal put forward by the Cardano leadership to convert a portion of their treasury funds into Bitcoin. He stated that this idea is flawed, indicating poor treasury management and sending a wrong message to the Cardano community. He remarked: "Projects should hold 18-36 months' worth of operating funds in short-term U.S. Treasuries, and that's the extent." The controversy stems from a proposal made by Charles Hoskinson, the founder of Cardano, 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 enhance Cardano's decentralized finance (DeFi) capabilities and address issues within its stablecoin ecosystem. However, critics believe that the proposal shows a lack of confidence in the ADA token. Crypto trader Aaron Dishner argued that this move could be perceived as Cardano admitting that Bitcoin is more valuable than its native token. The co-founder of Solana also echoed similar views, 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 triggered mixed reactions within the Cardano community. Some are worried 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.