Charles Hoskinson, founder of Cardano, has criticized XRP's value model, arguing that it lacks mechanisms to create natural buying demand. In a recent podcast, Hoskinson stated that XRP holders do not benefit from Ripple's business activities, as they have no legal rights to the company's assets or revenue. He highlighted that Ripple controls a significant portion of XRP's supply and uses sales proceeds for acquisitions, such as GTreasury and Secret Path, rather than benefiting token holders.
Hoskinson compared XRP to Tether (USDT), suggesting that value generated within the ecosystem primarily benefits the issuer, not the token holders. He noted that XRP's initial distribution heavily favored Ripple, with 70% to 80% of the supply allocated to the company. This structure, he argued, results in value transfer to Ripple rather than to XRP investors, intensifying debates about the token's centralization and long-term value proposition.
Cardano Founder Criticizes XRP's Value Model and Holder Benefits
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