Cardano Eyes $100M ADA Investment to Boost DeFi Ecosystem

Cardano’s co-founder Charles Hoskinson is pushing for a proposal that would allocate US$100M (AU$153M) in ADA toward growing its DeFi ecosystem and its stablecoin game. The plan would involve converting treasury funds into a mix of Bitcoin (BTC) and Cardano-native cryptocurrencies, such as USDM, USDA, and iUSD.

In a recent livestream, Hoskinson confirmed the proposal is under active review by Cardano Foundation leadership, including Dan Singleman, CIO of the Hoskinson Family Office. 

While laying out the strategy, he mentioned that this initiative is a direct response to Cardano’s underperformance in the stablecoin sector, citing poor adoption as a critical drag on the network’s competitiveness: 

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.

Charles Hoskinson, Cardano co-founder.

He argued that the treasury pivot could simultaneously generate non-inflationary revenue and energise the network’s stagnant DeFi economy. 

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The Cardano Community Reacts

But not everyone is feeling it. This proposal has generated a lot of anxiety in the Cardano community due to obvious concerns of price pressure on the ADA price once the organisation offloads US$100M worth of ADA on the open market.

However, Hoskinson stated that “100 million in ada can be placed in the market within 90 days with no movement of the price.”

The markets are deep. Billions of dollars of ada trade hands every week across the world. The belief that Cardano DeFi is bullish alone would create enough buy demand to offset a liquidation at this scale. If 100 million could move the market, Cardano would have extreme volatility.

Charles Hoskinson, Cardano co-founder.

The founder stated that the next step involves coordination with major DeFi projects in the ecosystem to assess feasibility and execution readiness.

At press time, ADA is trading at US$0.6 (AU$0.92), a decrease of 16.9% in the last 30 days, according to data from CoinGecko.

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