(P1) Cardano founder Charles Hoskinson stated on April 20, 2026, that Ripple's business model involves selling XRP to fund its operations without creating any organic buy demand for the token's holders.
(P2) "Nothing in Ripple's business model organically creates buy demand for the XRP token," Hoskinson said in a statement. "Holders are essentially funding a private company with no obligation to return value to them."
(P3) The core of the critique is that Ripple's sales of XRP provide the company with operational funding, a practice that has long been a point of contention in the crypto community. This differs from models like Ethereum, where network fees (gas) create a direct demand for the native token.
(P4) Hoskinson's comments could fuel negative sentiment among XRP holders and reignite debates around the token's centralization and long-term value accrual model, potentially impacting investor confidence.
The debate over XRP's tokenomics is not new. Critics have long pointed to the large portion of XRP held by Ripple and its founders as a centralizing factor. Proponents, however, argue that Ripple's work to build out the XRP ecosystem and its partnerships with financial institutions will ultimately drive demand for the token.
This recent critique from a prominent figure like Hoskinson, founder of the competing Cardano blockchain, brings the issue back into the spotlight. The remarks were made in the context of a broader discussion about the different economic models that underpin various cryptocurrencies.
As of 13:01 UTC on April 20, 2026, XRP was trading at approximately $0.58, down 2.5% over the past 24 hours, according to data from CoinGecko. The broader altcoin market saw mixed performance, with some assets posting slight gains while others followed Bitcoin's consolidation pattern.
This article is for informational purposes only and does not constitute investment advice.
