In a sharp exchange that has gripped the crypto community, Solana co-founder Anatoly Yakovenko called out altcoin projects—particularly Cardano—for investing their treasuries in Bitcoin. The remark, triggered by Cardano’s proposed $100 million BTC investment, raises a critical question: should altcoin teams buy Bitcoin or stick to native development?

Yakovenko’s Jab: “Why Pay for Coconuts?”

Yakovenko took to X (formerly Twitter), sarcastically asking why any team should buy Bitcoin for users when individuals could do it themselves. Comparing Bitcoin purchases to “paying for coconuts,” he suggested treasuries should hold only low-risk assets like U.S. Treasury bills to cover a few years of operations—not speculative crypto like BTC.

Cardano’s Countermove: A $100M BTC Strategy

In contrast, Cardano’s Charles Hoskinson believes Bitcoin can strengthen their ecosystem. By moving $100M worth of ADA into BTC and stablecoins, Cardano aims to earn yield and eventually buy back more ADA. This sparked backlash given Hoskinson’s past criticism of Bitcoin maximalism.

Community Split on the Strategy

The proposal sparked mixed reactions. Bitwise’s Jeff Park questioned the logic of “subpar altcoins” building Bitcoin treasuries. Others, like DeFi platform Alva, saw strategic merit, viewing it as a bold DeFi positioning play. Market-wise, ADA faces short-term skepticism, though a rebound could follow as technical levels stabilize.

Bigger Picture: Should Altcoins Bet on BTC?

The debate cuts deeper than a single treasury move—it reflects the growing divide in crypto philosophy. Should altcoins diversify into Bitcoin, embracing its perceived safety? Or focus exclusively on native token growth and ecosystem resilience?

With Bitcoin still viewed as a haven asset, more projects may quietly follow Cardano’s path, despite criticism. But such moves must be weighed carefully—especially in a market that punishes weak narratives.

Final Thoughts

For investors, this clash underscores the need to watch not just charts, but the choices teams make behind the scenes. A project’s treasury strategy might say more about its future than its price action does today.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always do your own research before making any financial decisions.