Cardano Founder Warns XRP Investors: Ripple May Be the Sole Beneficiary

BroadChain learned that at 22:30 on April 20, according to Bitcoinist, Cardano founder Charles Hoskinson recently warned XRP investors, pointing out that Ripple is funding its business operations by selling XRP, and its business model does not benefit XRP holders, only benefiting the company's shareholders. Hoskinson stated in an interview that there is no mechanism within the Ripple network to create demand for purchasing XRP tokens, and the company funds more acquisitions by selling its held XRP. He accused Ripple of allocating up to 80% of the XRP supply to itself, with the goal of driving up the XRP price and then selling its holdings to purchase more assets. He pointed out that although Ripple uses the XRP Ledger (XRPL) to run its business, the demand for XRP is limited, especially since the network lacks native staking or other DeFi mechanisms. Therefore, he believes Ripple is the sole beneficiary of holding XRP, which constitutes a massive value transfer to a single company, while XRP investors do not benefit. Hoskinson further explained that Ripple is strategically using its XRP holdings to build Web 2.5 companies, but the value generated by these companies does not need to accumulate to XRP. Notably, Ripple previously acquired Hidden Road and GTreasury, which have now been renamed Ripple Prime and Ripple Treasury. Earlier this year, Ripple CEO Brad Garlinghouse assured XRP investors that XRP remains central to its "Internet of Value" vision and has repeatedly described XRP as the "North Star" of the business. However, Hoskinson pointed out that although Ripple holds a large amount of XRP and uses the token to fund acquisitions, the company has no commitment to XRP investors, and even when generating revenue or profits, it has never conducted any XRP buybacks, instead continuing to sell more XRP. He also mentioned that XRP holders do not have any rights or stock options in Ripple. Interestingly, he compared Ripple to Tether, noting that these companies accumulate all the value, while users or XRP investors do not receive any benefits. Nevertheless, Ripple continues to integrate XRP into its platform, recently launching native XRP functionality in Ripple Treasury. According to CoinMarketCap data, as of press time, the XRP price is trading at approximately $1.40, down nearly 2% in the past 24 hours.