Charles Hoskinson, the founder of Cardano (ADA) and one of the most important figures in the cryptocurrency sector, recently spoke about Ripple and $XRP.
Speaking on Paul Barron’s podcast, Charles Hoskinson reiterated his criticisms of Ripple’s $XRP strategy.
Cardano founder Charles Hoskinson criticized Ripple’s strategy of selling $XRP, suggesting the company should implement a buyback model to increase the token’s market appeal.
At this point, Hoskinson argued that $XRP would become much more attractive if Ripple used a portion of its revenue to directly buy back $XRP tokens.
He suggested that Ripple allocate 20% to 30% of its revenue to buy back $XRP tokens, saying this would provide more value to token holders.
Hoskinson stated that Ripple’s approach of selling $XRP to generate revenue was incorrect, arguing that it benefited the company but did not benefit token holders.
At this point, Barron noted that Ripple reinvested the money it earned from $XRP sales back into the $XRP Ledger ecosystem. He suggested that this could be considered a meaningful investment in the broader $XRP network.
Hoskinson agreed, but argued that it wasn’t enough. He said Ripple should tie its trading profits directly to $XRP through a buyback model.
In response, Hoskinson argued that Ripple currently has no financial or legal justification for sharing this wealth with token holders, adding that he does not expect Ripple to implement a buyback system.
He argued that Ripple would likely continue selling $XRP, earning billions of dollars, and then use that money to buy tangible assets through the company.
*This is not investment advice.
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