Solana Labs CEO Anatoly Yakovenko has strongly criticized Cardano founder Charles Hoskinson's proposal to convert $100 million worth of ADA into Bitcoin.
Last week, Charles Hoskinson, founder of Cardano, proposed Convert $100 million in ADA, Cardano's native cryptocurrency, into Bitcoin and stablecoins as part of a strategy to strengthen the liquidity of Cardano's DeFi ecosystem. According to Hoskinson, this measure would allow for the generation of yields in BTC that could then be used to buy back more ADA, with the idea of repeating the process annually for 5 to 10 years, thus growing the treasury to over $1.000 billion.
However, this recent Bitcoin treasury proposal has sparked a heated debate in the crypto world, and Solana CEO Anatoly Yakovenko has not hesitated to express his strong opposition.
Thus, while Cardano seeks to emulate large financial institutions by betting on Bitcoin to strengthen its ecosystem and support the buyback of ADA, Yakovenko questions the prudence of this move, pointing to it as a risk that could undermine confidence in altcoins.
This strategy, while seen by some as a bold move to diversify and strengthen Cardano's position, has met with resistance from key industry figures, who fear that reliance on Bitcoin could dilute the value and identity of altcoins.
BUY SOLANA ON BIT2MEEveryone, including Cardano and Polkadot, wants Bitcoin
Cardano, one of the most recognized blockchain projects in the crypto ecosystem, is considering converting a significant portion of its treasury into Bitcoin. The goal is to use these assets to generate returns that allow it to repurchase ADA, thus strengthening its digital ecosystem.
The initiative follows a similar debate is taking place on Polkadot, where its community is also considering a similar strategy for purchasing Bitcoin. In fact, a proposal on its governance forum suggests converting 500.000 DOT, worth approximately $2 million, into tBTC, a tokenized version of Bitcoin, to be used as a reserve in its treasury. Similar to Cardano's proposal, this initiative would seek to diversify the ecosystem's funds and support its DeFi infrastructure.
However, these proposals have generated divided opinions among experts and cryptocurrency enthusiasts. So far, It is unconventional for altcoin projects to target Bitcoin, So, while some consider the creation of a BTC reserve a strategic and intelligent move capable of providing long-term stability and growth, others warn that it could represent a risk and divert the main attention from the projects.
BUY AND MANAGE YOUR BITCOINSYakovenko rejects Bitcoin strategy
Anatoly Yakovenko, CEO of Solana Labs, did not hesitate to express his rechazo He strongly criticized the management of Bitcoin reserves by altcoin projects like Cardano and Polkadot. He believes that these platforms' desire to accumulate BTC represents an unnecessary and unwise strategy.
Yakovenko called this proposal “foolish,” arguing that every investor should have full, personal control over their assets, including Bitcoin, without a team or project managing those funds for them.
In his view, altcoin projects should hold safe, low-risk assets, such as U.S. Treasury bonds, to cover their operating expenses. Purchasing large amounts of Bitcoin with user funds, according to Yakovenko, exposes these projects to a risk that could affect their financial stability.
His position, beyond being a criticism, reflects a firm vision toward decentralization and financial autonomy, to avoid the concentration of power in the hands of projects or governments.
BUY CARDANO HEREThe debate in the crypto community: Innovation or unnecessary risk?
Some experts acknowledge that converting part of the treasury into Bitcoin could strengthen Cardano's position in the decentralized finance sector. They argue that the diversification into solid assets like BTC can reduce volatility and offer greater long-term stability.
However, others see the move as a sign of weakness. Critics say that an altcoin abandoning part of its own digital assets to build a Bitcoin reserve suggests a lack of confidence in the native currency's future value. They also warn that this strategy could set a dangerous precedent, encouraging other projects to follow the same path and, consequently, erode identity and autonomy of altcoins.
The community has also pointed out that collective fund management in Bitcoin can lead to conflicts of interest and governance issues. While decentralization is one of the pillars of the crypto world, decision-making over large sums of money can lead to internal disputes and a lack of transparency.
This clash of opinions between proponents and critics isn't just a technical discussion, but a reflection on the future of the sector. As Cardano and others explore ways to consolidate their ecosystems with Bitcoin as backing, the key is to balance innovation and caution to maintain the decentralized essence.
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