Charles Hoskinson, founder of Cardano, openly questions the business model behind XRP. His criticism focuses on one central point: who collects the real profits?
• Hoskinson sees value shift from XRP investors to the Ripple company
• Criticism of token sales and lack of investor participation
• Comparison with Tether and doubts about long-term benefits for XRP holders
“The value ends up with Ripple” – Hoskinson makes a sweeping attack
In the video podcast by YouTuber “CryptoWendyO”, Cardano founder Charles Hoskinson takes aim at Ripple. As can be seen from the vodcast, Hoskinson sees a structural weakness in the system: increases in value would not necessarily reach the token holders, but primarily the company itself.
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He literally stated that “no part of this value necessarily arrives at XRP, but flows to the Ripple company.” XRP investors have no legal claim to company assets or profits from operational business.
In doing so, the Cardano founder questions the fundamental assumption that increasing corporate activity automatically leads to an increase in the value of the token.
Token sales instead of building value? How Ripple generates capital according to Hoskinson
According to Hoskinson, the focus of the criticism is the way Ripple generates and uses capital. As discussed in the vodcast, the company controls a large portion of the XRP supply and is actively using this inventory for financing.
Hoskinson explained that the model works simply like this: generate attention, let the price rise and then sell tokens. “The game is: grab the headlines, drive the price up, sell XRP and use the money to buy assets,” he said.
The proceeds would then flow into corporate projects and acquisitions, such as the expansion of institutional services. According to MEXC, Hoskinson also referred to larger strategic steps such as billion-dollar acquisitions and the development of new business areas.
However, one central point of criticism remains: according to his account, XRP holders have no access to these values. “I can’t exchange my XRP for these assets,” Hoskinson said in the interview.
Comparison with Tether and EOS: A structural problem in the crypto model?
To put things into context, Hoskinson drew parallels to other crypto projects. The comparison with Tether was particularly clear. According to him, the profits made there would not benefit the token holders, but would remain within the company.
He also referred to the example of EOS and the company Block.one. This collected billions without the network itself benefiting in the long term.
His conclusion in the interview is correspondingly clear: There is a “big shift in value towards a central company”, while token holders only receive a network and a trading instrument.
Criticism from the XRP community: Clear contradiction to Hoskinson’s allegations
Charles Hoskinson’s statements have met with significant resistance within the XRP community. According to BTC-ECHO, his allegations were clearly rejected, particularly regarding the alleged lack of investor participation in company assets.
Ripple representatives emphasized that the company acts in the interests of the entire crypto ecosystem. The criticism that XRP holders are structurally disadvantaged was not shared by this site.
This brings different perspectives into collision: While Hoskinson fundamentally questions the ownership and value structure, the other side points to Ripple’s role as an actor within a larger market and ecosystem.
Benedict Kurschat, editorial team at finanzen.net
