Cardano's founder, Charles Hoskinson, has proposed converting a portion of the project’s treasury into a sovereign wealth fund, which could significantly impact the Cardano ecosystem.
What Hoskinson’s Proposal Changes
Charles Hoskinson stated that Cardano’s treasury holds around 1.7 billion ADA, valued at approximately $1.2 billion. His idea involves reallocating 5 to 10 percent of that into a mix of stablecoins, such as USDM, IUSD, and Bitcoin. The goal is to improve Cardano’s stablecoin share within its DeFi ecosystem, currently below 10 percent. He suggested spreading the conversion over 30 to 90 days using methods like OTC deals or time-weighted averages to avoid major impacts on Cardano’s price.
Growth Prospects and Risks for ADA
The current price of Cardano is around $0.598. Its technical indicators remain mixed, but analysts see potential for range-bound trading if support holds. For the rest of June, growth is forecasted to roughly $0.608–$0.615, reflecting both the upside appeal from Hoskinson’s fund plan and risks in current market conditions.
Other Projects in the Crypto Space
While Cardano focuses on optimizing its treasury and improving DeFi ratios, another project, Remittix, is addressing a more immediate challenge by turning crypto into spendable money. Remittix has created a crypto-to-cash platform allowing users to convert tokens into fiat and send them directly to bank accounts, supporting over 100 tokens and more than 30 national currencies.
Hoskinson’s sovereign fund proposal and his plan to convert $100 million in ADA could stabilize Cardano’s price, increase liquidity, and promote deeper DeFi involvement. This move, along with practical tools like Remittix, indicates a shift towards real utility in the crypto world.
