If someone receives say 10 million ada from the treasury to fund his project then what happens?
- He instantly sell and converts to fiat…
- He does not sell and gambles on ada price increase which may lead to a disaster
I believe there is 6 million dollar in funds each month soon?
If projects choose option 1 then we will have massive sales pressure each month leading to lower ada prices
If projects choose option 2 then we could have similar results like the ICO craze. They gambled on higher ether prices but were wrong and ran out of money.
We don’t want high sales pressure each month nor don’t we want people gamble with their funding?
(I understand the so called feedback loop where the projects create value and demand when they launch their product. However this is front run by huge sell pressure)
Is there an official rule on how to deal with received funds?