Charles Hoskinson Says XRP Holders Get Nothing When Ripple Succeeds, Here’s Why

Charles Hoskinson argues that XRP holders will not benefit from Ripple's success, sparking debate within the cryptocurrency community. Discover his reasoning here.

Could XRP Holders Be Left High and Dry When Ripple Succeeds? The cryptocurrency community has been buzzing with Charles Hoskinson's recent comments regarding the implications of Ripple's success for XRP holders. You might be wondering—if Ripple flourishes as a company, do XRP holders reap the benefits? According to Hoskinson, the answer is a resounding no, and his argument is worth diving into. What Did Charles Hoskinson Say About XRP Holders? During a recent discussion, Hoskinson was posed a thought-provoking question: do XRP holders benefit from Ripple's success when headlines potentially boost the token's price? His response was candid and rooted in the realities of tokenomics. Hoskinson stated, “You got to understand that they gave themselves somewhere between 70 to 80% of the supply.” This is a significant share that Ripple indisputably retains control over. According to Hoskinson, the strategy is quite simple: generate headlines to drive the price up, sell XRP to investors, and then use those funds to acquire assets. This raises an important point—XRP holders do not legally own anything Ripple builds with the money raised from selling XRP. “XRP holders have no legal ownership of those assets. They go to a centralized company. The XRP token doesn’t really have much to say or do with that.” Is XRP Just Another Tether? In a striking comparison, Hoskinson likened XRP to Tether. He argued that there is no mechanism within the Ripple network to create buy demand for the XRP token. Instead, Ripple's centralized company benefits from their own equity at the expense of token holders. “It’s basically like Tether from that perspective. One company gets all the value, and the holders get some instrument and some network, but they don’t actually get any price appreciation from that,” he noted. In contrast, Hoskinson presented the case for what he calls well-structured tokenomic models, citing projects like Midnight and Hyperliquid. In these setups, usage of the platform di