Cardano Price Crash Likely as Foundation Plans to Sell $500M ADA
The post Cardano Price Crash Likely as Foundation Plans to Sell $500M ADA appeared on BitcoinEthereumNews.com.
Cardano (ADA) price, a proof-of-stake blockchain platform, has seen notable price swings over the past day following a market correction. The altcoin trades have heightened volatility, with cryptos reflecting the recent ups and downs. ADA’s price stabilizes, as reports indicate the Cardano Foundation plans to sell $500 million worth of ADA tokens. Cardano Price Dip Expected Amid $500M ADA Sell-Off Cardano price volatility is anticipated as discussions unfold around a proposed budget requiring up to 500 million ADA in 2025. The budget proposal, if approved, could pressure the cryptocurrency market, sparking unease among holders and developers due to potential price impacts. Critics argue this allocation risks devaluing Cardano, even if the sale is gradual. The projected treasury income for Cardano in 2025 stands at 334 million ADA, urging community members to push for a balanced budget that doesn’t exceed incoming revenue. Advocates for fiscal discipline propose allocating only 50% of treasury funds to Intersect, a facilitator for Cardano’s governance, reserving the remainder for future use and additional projects. I’ve taken the time to review the #Cardano 2025 budget materials, and here is my take 🔥 1⃣ 300 – 500 Million $ADA is too much of an ask for any entity for the 2025 budget. Even if this amount of ADA is not sold all at once, opening up ~500 million ADA to be sold will have… https://t.co/9taQdKJuer pic.twitter.com/KFpbu7Q9uM — GAIA Stake Pool 🇨🇦 Make a Difference SPO & DRep (@GAIAstakepool) November 4, 2024 Intersect’s role is central; the organization will handle the budget and ensure projects meet quarterly milestones. It will also hedge ADA by converting it to stablecoins for payments. However, some suggest limiting Intersect’s power by preventing it from staking or voting with treasury Cardano to maintain ecosystem balance. Calls are growing for a transparent, detailed budget, especially…
Filed under: News - @ November 5, 2024 12:21 am