Ripple's Business Model Raises Concerns in Crypto Community

Charles Hoskinson, the founder of Cardano, has made some comments about Ripple's business model that have sparked debate in the cryptocurrency community. According to Hoskinson, Ripple's approach to XRP has been consistent for over a decade: the company sells XRP, generates billions of dollars, and uses those funds to acquire hard assets through a corporate structure that XRP holders do not own.

Hoskinson notes that token holders do not have access to the prime brokerage business or any other valuable pieces Ripple is building with the proceeds. He suggests that if Ripple were to commit 20-30% of its revenue to XRP buybacks, it would fundamentally change the value proposition of the token. He points to Hyperliquid as an example of how buyback programs work in practice.

Hoskinson also draws a parallel with Block One and the EOS token, which raised $4 billion for the token in 2018 but subsequently declared that they had no fiduciary obligation to EOS holders. He warns that a similar scenario could play out with XRP, and suggests that it would be a serious mistake given how vocal and passionate the XRP community is.