Cardano Founder Says ‘Grow Up or Fall Behind,’ Pushes for Billion-User Vision Amid Liquidity Woes

Cardano founder Charles Hoskinson says the network must undergo growing pains to “win” against other blockchains. The first step for Cardano will be to solve its lingering stablecoin issue, but critics argue that Hoskinson’s proposed solution is not the ideal strategy.

‘Grow Up or Die,’ Says Charles Hoskinson

As criticism mounts over a proposal to convert ADA from Cardano’s treasury into stablecoins, Charles Hoskinson has pushed back. In a post on X, the Cardano founder warned that the network faces serious risks from inaction, while rival blockchains leverage unfair advantages to get ahead.

Hoskinson argues that other blockchains are relying on venture capital and media influence to stay ahead of the curve. Armed with large financial resources, these networks can poach Cardano developers and decentralized applications (dApps).

“We aren’t in a static game with a guaranteed seat at the table,” said Hoskinson. “We are in an ocean of sharks trying to eat us every day. “

Last week, Hoskinson identified Cardano’s biggest weakness, pointing to its lack of stablecoin liquidity. Currently, Cardano’s stablecoin market capitalization to total DeFi total value locked (TVL) stands at just 9.65%. By contrast, Ethereum and Solana boast ratios of 195% and 125%, respectively.

He notes that the total value of all stablecoins issued on Cardano is only $33 million. This limited liquidity stifles DeFi growth, prompting Hoskinson to urge the community to take action and address the issue.

“We have to decide if we want to win—if we’re serious about having a billion users and truly want Cardano in every home,” Hoskinson.

A Proposal To Fix Stablecoin Undersupply On Cardano

Hoskinson has proposed a quick fix to the stablecoin problem: converting $100 million ADA into Cardano-native stablecoin. He is particularly pushing for the ADA conversion into USDM, which he says will fill a “significant vacuum” in Cardano’s ecosystem.

However, the proposal has sparked criticisms, with the loudest voices saying that an ADA sale will send prices tumbling. They claim that a prolonged bear market, combined with a mass sale of ADA tokens, could result in a steep price drop.

Hoskinson countered that the sale would not significantly impact prices due to the market’s deep liquidity. He suggests using over-the-counter (OTC) trades spread over a week to mitigate potential sell pressure.

“Growing up is hard, but that’s where we are as an ecosystem,” said Hoskinson. “It’s tough love, but I’d be doing you all a disservice if I didn’t say it.”

Amid the buzz around the stablecoin fiasco, Hoskinson hints at an XRP integration into Cardano. He confirmed that a full XRP package is in the works but did not share information on the timeline for the integration.