Anatoly Yakovenko, co-founder of Solana, has sharply criticized Charles Hoskinson’s idea, co-founder of Cardano, regarding the conversion of part of Cardano’s reserves into bitcoins and stablecoins. According to Yakovenko, such a strategy is impractical for the altcoin ecosystem.
This is reported by Бізнес • Медіа
Yakovenko’s Reaction and Arguments on Fund Management
Yakovenko emphasized that holding bitcoins in the treasury of crypto projects makes no sense, as market participants can invest in the first cryptocurrency themselves. He believes that the optimal approach for the project fund is to keep assets in low-risk instruments, such as short-term treasury bills, and only to cover 18–36 months of operational expenses.
“This is so dumb. Projects should keep 18-36 months of post-kill list runway in short-term tbills but that’s about it. Why would anyone want a team to buy and hold bitcoin for them when they can do it themselves? Why pay for all those coconuts”.
He stated that purchasing bitcoin for the project’s treasury is unjustified, as it does not add value for the platform’s users.
Details of Cardano’s Initiative and Community Reaction
Hoskinson proposed converting about $100 million into bitcoins and stablecoins from Cardano’s reserve, arguing that this would strengthen the financial stability of the ecosystem and allow profits to be directed towards buying back ADA. In his view, this strategy would help expand the project’s resource base without harming Cardano.
However, this idea has elicited mixed reactions within the crypto community. Experts pointed out that Hoskinson had previously criticized bitcoin and its concept, and now Cardano plans to form a reserve based on the first cryptocurrency. Jeff Park, head of Bitwise Alpha Strategies, described this situation as “unpredictable” even for 2025:
“Weak altcoins that abandon their own assets to create a bitcoin treasury were not on my bingo card for 2025. The world is healing,” the expert stated.
Users also noted that the abrupt change in strategy contradicts Hoskinson’s earlier statements that bitcoin is no longer a unique “money network.” Yakovenko emphasized that ecosystems should focus on sustainable management of their own assets rather than risking funds in speculative instruments.
It was previously announced that Cardano launched the first DeFi protocol for bitcoin without intermediaries — Cardinal.