Charles Hoskinson Explains Why XRP Holders Don’t Benefit When Ripple Succeeds
April 19, 2026 — In a recent discussion, Cardano founder Charles Hoskinson addressed a frequently debated topic in the cryptocurrency space: whether XRP holders directly benefit when Ripple, the company behind XRP, achieves business success. Hoskinson’s answer was clear and detailed, emphasizing the fundamental differences between token ownership and company ownership.
The Ownership Divide
Hoskinson explained that Ripple’s ownership of the XRP supply is heavily skewed. According to him, the company controls approximately 70 to 80 percent of the total XRP token supply. This concentration enables Ripple to influence the market by leveraging the token to raise capital. He described Ripple’s strategy as creating favorable headlines to push up XRP prices during bullish markets, then selling their tokens to external buyers and using the generated cash to fund business acquisitions and other assets.
Despite Ripple’s extensive development efforts—such as building a primary brokerage, custody solutions, treasury management platforms, and acquiring other businesses—Hoskinson highlighted a critical issue for XRP holders: they do not have legal ownership rights over these assets. These belong to Ripple as a private entity, supported by independent investors and shareholders.
“XRP holders have no legal ownership of those assets,” Hoskinson stated. “They go to a centralized company. The XRP token itself doesn’t really have much say or role in that. There are no staking rewards or other mechanisms connected to it.”
Comparing Tokenomics Models
Hoskinson contrasted Ripple’s model with what he considers “properly structured” tokenomics. Using projects like Midnight and Hyperliquid as examples, he argued that well-designed token ecosystems generate direct buy demand when network activity grows, creating a positive feedback loop that benefits token holders. In those systems, the more the network is used, the more the token’s value appreciates, flowing returns back to its holders.
“In the case of the Ripple network, there is nothing that creates buy demand for XRP,” he remarked. “That’s unlike Hyperliquid or app chain models where token utility and value are directly linked to network performance.”
He referenced the EOS example from the past as a cautionary tale. Block One, the company behind EOS, raised $4 billion and clearly stated it had no fiduciary duty to the EOS ecosystem. While Block One retained the capital and grew its treasury, EOS token holders were left with a token whose market performance failed to reflect the company’s financial gains.
The Bull Market Reality
It is undeniable that bullish market conditions and positive news coverage can, at least temporarily, pump XRP’s price, benefiting holders in the short term. The question posed to Hoskinson suggested that even if Ripple keeps all business value for itself, XRP holders can still profit during such periods.
Hoskinson acknowledged this short-term price effect but stressed that his critique focused on Ripple’s long-term structural issues. Ripple consistently sells large amounts of XRP—hundreds of millions to billions of dollars annually—a fact documented in SEC filings that formed the core of the ongoing lawsuit against the company.
“This selling feeds cash into Ripple, not back into XRP,” Hoskinson explained. “When Ripple generates revenue and profit, there is no XRP buyback. The company sells the token instead.”
Conclusion
Charles Hoskinson’s analysis draws attention to a fundamental distinction in the crypto space between token holders and company shareholders. While Ripple’s success might drive XRP’s market price up temporarily, the lack of legal ownership and direct token utility means XRP holders do not partake in the underlying business value Ripple creates. This perspective serves as a reminder for investors to evaluate token economics carefully, considering long-term structural sustainability alongside market hype.
Author: Anjali Belgaumkar
Anjali is a cryptocurrency writer and researcher currently focusing on financial news, analysis, and crypto market data.
Tags: Crypto news, Ripple (XRP), Tokenomics, Cryptocurrency markets
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research before making investment decisions.