Cardano Founder Warns XRP Investors, Is Ripple Doing Something Wrong?

bitcoinistPublished on 2026-04-20Last updated on 2026-04-20

Abstract

Cardano founder Charles Hoskinson has warned XRP investors, claiming Ripple is dumping its XRP holdings to fund business acquisitions without benefiting token holders. He alleges Ripple controls 80% of the supply and uses sales to build Web 2.5 companies, with no buybacks or value distribution to XRP investors. Hoskinson also notes the lack of staking or DeFi mechanisms on XRPL reduces organic demand. Despite Ripple CEO Brad Garlinghouse calling XRP central to their vision, Hoskinson compares Ripple to Tether in accruing value solely for itself. XRP price fell nearly 2% to around $1.40.

Cardano founder Charles Hoskinson has warned XRP investors about Ripple, stating that the company is dumping XRP to fund its business operations. He also noted that Ripple’s business doesn’t in any way benefit these XRP holders but only the company’s shareholders.

Cardano Founder Warns XRP Investors About Ripple

In an interview, the Cardano founder stated that there is nothing in the Ripple network that creates buy demand for the XRP token. He further remarked that the company sells its XRP holdings to fund more acquisitions. This came as Hoskinson had alleged that the company allocated up to 80% of the XRP supply to itself.

The Cardano founder also alleged that Ripple’s goal is to inflate the XRP price and then sell their holdings to buy more assets. He noted that Ripple uses the XRP Ledger (XRPL) to run its operations, but there isn’t much demand for XRP, especially since there is no native staking or other DeFi mechanisms on the network.

As such, he believes that Ripple is the only one gaining from holding XRP, describing it as a huge value transfer to just one company while XRP investors do not benefit. The Cardano founder further explained that Ripple is strategically using its XRP holdings to build Web 2.5 companies and that none of the value from these companies has to accrue to XRP.

It is worth noting that Ripple acquired Hidden Road and GTreasury, which have now become Ripple Prime and Ripple Treasury. At the start of the year, Ripple CEO Brad Garlinghouse had assured XRP investors that XRP remains central to their vision of being the internet of value. He has also, on several occasions this year, described XRP as the ‘North Star’ of their operations.

No Commitment On Ripple’s End To The XRP Ecosystem

The Cardano founder indicated that there was no commitment on Ripple’s part to XRP investors, despite its large holdings and its use of the token to fund acquisitions. He noted that the company doesn’t conduct any XRP buybacks, even when it generates revenue or profits. Instead, they only continue to sell more XRP.

Hoskinson also mentioned that XRP investors do not have any rights in Ripple or any access to stock options simply by being XRP holders. Interestingly, he likened Ripple to Tether, noting how these companies accrue all the value without their users or XRP investors, in this case, getting anything. However, it is worth noting that Ripple has continued to integrate XRP into its platforms, most recently with the launch of native XRP capabilities on Ripple Treasury.

At the time of writing, the XRP price is trading at around $1.40, down almost 2% in the last 24 hours, according to data from CoinMarketCap.

ADA trading at $0.24 on the 1D chart | Source: ADAUSDT on Tradingview.com

Related Questions

QWhat did Cardano founder Charles Hoskinson warn XRP investors about regarding Ripple?

ACharles Hoskinson warned that Ripple is dumping XRP to fund its business operations and that this benefits only Ripple's shareholders, not XRP holders.

QAccording to Hoskinson, how does Ripple use its XRP holdings to support its business strategy?

AHoskinson alleged that Ripple sells its XRP holdings to fund acquisitions and build Web 2.5 companies, with the goal of inflating XRP's price to sell their holdings for more assets.

QWhat did Hoskinson claim about the demand for XRP on the XRP Ledger (XRPL)?

AHe stated there isn't much demand for XRP on the XRP Ledger, especially because it lacks native staking or other DeFi mechanisms.

QHow did Hoskinson describe the relationship between XRP investors and Ripple's financial benefits?

AHe described it as a huge value transfer solely to Ripple, with no benefits accruing to XRP investors, who have no rights in Ripple or access to stock options.

QWhat recent integration did Ripple make involving XRP, as mentioned in the article?

ARipple recently integrated native XRP capabilities into Ripple Treasury, following acquisitions like Hidden Road and GTreasury.

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