A community discussion on hot wallet safety in the Cardano ecosystem recently took an unexpected turn when founder Charles Hoskinson made a bold funding suggestion. The talk began after DeFi platform FluidTokens released a fresh audit report.
Wallet Safety Concerns Rise
Community member MadMusicMaker asked Hoskinson for practical advice on securing funds in a hot wallet. He acknowledged the risks but wanted actionable steps. His question followed several recent scams targeting Cardano project team members.
Another participant, Bobcorn, highlighted one case where attackers tricked victims into downloading a fake Zoom app. The malware compromised devices and exposed wallet seeds. Bobcorn advised avoiding suspicious links and never installing unverified software.
Hoskinson’s Security View and SEC Stand
Hoskinson responded by sharing his thoughts on security and reiterating his stance that ADA staking is not a security under U.S. law. His remarks added weight to the ongoing debate over user safety in the ecosystem. Alongside the security talk, Hoskinson proposed allocating $100 million worth of ADA from the Cardano Foundation’s treasury to strengthen DeFi growth.Â
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The plan, still under review by foundation leaders and Dan Singleman, Chief Investment Officer of the Hoskinson Family Office, would involve buying Bitcoin and Cardano-native stablecoins such as USDM, USDA, and IUSD. He said the strategy would involve working with multiple DeFi projects to ensure operational readiness and smooth execution.
Addressing Market Impact Concerns
In a YouTube update, Hoskinson dismissed fears that selling $100 million worth of ADA would disrupt the market. He noted ADA’s deep liquidity and high exchange activity, with hundreds of millions of dollars traded daily.
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To avoid shocks, he suggested selling gradually over 30–90 days using time-weighted average price (TWAP) strategies and over-the-counter (OTC) deals.
The proposal stirred debate over possible price effects. However, ADA traded at $0.8549 at the time, up 9.55% in 24 hours. The cryptocurrency remains the tenth-largest by market capitalization but is still far below its all-time high of $3.10.
