- January 13, 2025
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
In a recent series of exchanges on X, Input Output Global (IOG) CEO and Cardano founder Charles Hoskinson addressed allegations surrounding the Cardano Foundation’s (CF) approach to stablecoin integrations, while also signaling fresh possibilities with Ripple’s RLUSD. The conversation drew attention to unresolved tensions between Hoskinson, the CF, and various members of the community, as well as to Cardano’s potential collaborations with Ripple.
Conflict Over Cardano Foundation’s USDC Deal
The dispute began when Cardano staking pool operator @matiwinnetou criticized the CF and Hoskinson directly, claiming they had failed to bring popular stablecoins onto the network. “Cardano Foundation (CF) doesn’t work well… since they have too much ADA and not willing to spend it on multi-million budgets, Cardano Community demands USDC, USDT. […] It is impedance mismatch of Cardano as decentralised blockchain in centralized L1 space. In addition, Charles Hoskinson often does not help in some respects and puts more oil to the fire than necessary.”
Hoskinson promptly refuted the notion that IOG was at fault, pointing the finger at the Cardano Foundation’s past decisions regarding a USDC integration. “The CF could have integrated circle back in 2021 for 3 million dollars. This was when their holdings were worth almost 2 billion dollars. They turned down the deal according to their own employee,” he stated. Hoskinson further remarked, “Then you rewrite history to eschew any of their responsibility and make it into power dynamics? I’m seriously glad you don’t work for me anymore. Dishonest people have no place at IOG.”
A user named Jane (@Jane14457995) weighed in on the debate, criticizing Hoskinson’s tone: “No clue who’s ‘right’, but don’t like the tone & it’s a default that’s IMO self-sabotage. Saw a recent AMA video (9 mos ago) where the issue of why Cardano doesn’t have USDC was much more complicated in your view, Charles. Attacking a former employee s/b way beneath you.”
Hoskinson answered with more details on the CF’s missed opportunity. He accused the Cardano Foundation of once again impeding progress by refusing to fund stablecoin-related initiatives while also currently voting against alternative budgets. “Again, endless defense of the CF and its agents. I love your fake objectivity. When someone lies and misleads, then they will be held accountable. […] The reality has always been that they passed on the deal in 2021,” he wrote.
Hoskinson underscored the community’s desire for stablecoin support: “The community clearly wants USDC. The community clearly wants CNT liquidity. The community clearly wants better Oracle support. The CF could do these things or leave it to the budget. My issue is that while they recuse themselves from the former, they also want to sabotage the latter by voting against the budget. So everyone loses.”
He further asserted that Cardano’s growth strategy is at risk if no stablecoin solution materializes. “There isn’t enough funding to cover the ecosystem, its growth, future integrations, and marketing, even if IOG works for free. This is a fight worth having because it is existential to the entire ecosystem’s future.”
Pivot Toward Ripple’s RLUSD
As the discussion unfolded, Jane suggested a stablecoin collaboration with Ripple, referencing the “renewed harmony with the Ripple/XRP community” and hinting that it “might be easier and cheaper” than pursuing other routes. She then asked, “Would IO or Intersect consider doing that if CF doesn’t?”
Hoskinson replied, “If there is a reasonable path to integrating RLUSD, I’ll try to cover it as a gift to the ecosystem. Cardano needs a solid stablecoin ecosystem from USDM and Djed to RLUSD.” Jane tagged Ripple CEO Brad Garlinghouse and suggested that “it seems like a natural fit in terms of ideals and something that could benefit both communities greatly.”
Hoskinson confirmed that progress is already underway: “Jane, we’ve already had a call with the RLUSD people. We are actively talking.”
Just two weeks ago, Hoskinson revealed that discussions with Ripple were in the “early days,” hinting at a plan to include Ripple’s infrastructure in Cardano’s upcoming privacy-focused sidechain, Midnight. “We’d like to include Ripple in the Midnight ecosystem,” he remarked, underscoring initial steps between both teams.
According to Hoskinson, he and Ripple CTO David Schwartz have engaged in technical discussions to determine how each platform could benefit. “There are ongoing talks between the Midnight people and the Ripple people and a lot of technological talks as well. And we’ve been trying to learn more about how their stack works,” Hoskinson stated.
Despite the encouraging signals, Hoskinson noted that formal partnerships typically require patience, stating, “First step was just technical conversations and that’s what we did with David [Schwartz] who’s been tremendously helpful and a great asset. Then at some point once you’ve got beyond that, then there’s actual integration work and other things to get done, but overall they’ve been easy to work with.”
At press time, ADA traded at $0.92
