TLDR
- Charles Hoskinson said Ripple’s business model does not provide direct benefits to XRP holders.
- He compared XRP to Tether and claimed that company profits remain within Ripple.
- Hoskinson stated that XRP holders have no ownership stake in Ripple’s earnings or acquisitions.
- He pointed to Ripple’s $1.2 billion Hidden Road acquisition as part of its Web 2.5 strategy.
- Hoskinson said Ripple’s RLUSD stablecoin reflects a Tether-like corporate approach.
Charles Hoskinson criticized Ripple’s business model during a recent industry interview. He compared XRP to Tether and questioned whether token holders gain value. He argued that Ripple’s corporate strategy does not reward XRP holders despite ongoing token sales.
XRP Under Scrutiny as Hoskinson Questions Value Flow
Hoskinson shared his views on The O Show with host Wendy O. He said Ripple’s structure channels value to the company instead of XRP holders. He argued that XRP holders have no ownership stake in Ripple’s operations or profits.
He stated, “None of the value has to accrue to XRP; it goes to the Ripple company.” He compared Ripple’s structure to Tether’s approach under Paolo Ardoino. He claimed Tether keeps earnings within the company rather than distributing them to token holders.
Hoskinson explained that Ripple sells XRP to fund business growth and acquisitions. He said the company uses proceeds to acquire assets while holders retain no legal claim. He added that XRP does not provide staking rewards or revenue-sharing mechanisms.
Wendy O responded that strong media coverage and bullish cycles can lift XRP prices. She noted that market demand can still reward holders through price gains. Hoskinson replied that Ripple often promotes developments, raises attention, and later sells XRP holdings.
He claimed Ripple then uses the capital to purchase other assets. He stressed that XRP holders do not benefit from those acquisitions. He said, “They get some instrument and some network, but they don’t actually get any price appreciation from that.”
Ripple’s Web 2.5 Strategy and Stablecoin Expansion
Hoskinson described Ripple’s direction as part of a broader shift toward “Web 2.5.” He defined this model as a blend of blockchain systems and traditional corporate structures. He said firms such as Circle and projects like Canton pursue similar approaches.
He pointed to Ripple’s $1.2 billion acquisition of Hidden Road as evidence. He also cited Ripple’s focus on institutional compliance and privacy tools. He said these tools aim to automate regulatory processes for large financial clients.
Hoskinson referenced Ripple’s RLUSD stablecoin initiative during the discussion. He described the move as a “Tether-like approach” within the Web 2.5 framework. He argued that stablecoin revenue streams may strengthen Ripple’s balance sheet, not XRP.
He compared Ripple’s structure to Block.one’s EOS model. He said Block.one raised $4 billion and later built large Bitcoin and Ether holdings. He claimed the EOS network did not receive direct financial benefit from that treasury growth.
Hoskinson contrasted this with Cardano’s launch structure. He said he did not pre-mine 80% of Cardano’s supply. He also said he did not design a system that requires selling billions in tokens annually.
He further claimed Ripple CEO Brad Garlinghouse supports policies affecting new crypto projects. He said Garlinghouse promotes rules that could classify new tokens as securities by default. He argued that such policies may favor established assets like XRP, Bitcoin, Ethereum, and Cardano.
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