- Charles Hoskinson slams traditional finance for attempting to copy Web3 innovations without understanding the underlying principles.
- Legacy finance is accused of stripping out decentralization, open access, and global composability.
- Hoskinson references XRP and Midnight, showcasing that TradFi attempts to copy them.
As the blockchain industry continues to grow, the lines between innovation and imitation are becoming increasingly blurred. Traditional finance (TradFi), once slow to adapt to the rise of crypto and blockchain technologies, is now scrambling to get in on the action.
However, Cardano founder Charles Hoskinson sees TradFi’s efforts as misguided. He has spoken out against their attempts to copycat the success of XRP and Midnight. Hoskinson provides a sharp critique that underscores the widening philosophical gap between Web3-native networks and conventional financial players.
Notably, his Twitter post comes amid the ongoing frenzy surrounding “Midnight,” Cardano’s phenomenal project, set for major developments and a potential mainnet launch in 2026.
Legacy Finance Copies XRP and Midnight: Charles Hoskinson
In his recent post on X, Cardano founder Charles Hoskinson noted that legacy finance is just attempting to imitate the success of XRP and Midnight, but their efforts are ultimately doomed to fail.
He believes that the traditional institutions are trying to replicate the strengths of these blockchain-based payment systems, but without embracing the underlying principles of decentralisation, open access, and global composability. By doing so, they are stripping out the very attributes that make XRP and Midnight effective in the first place.
Charles Hoskinson’s critique suggests that legacy finance is more interested in superficial imitation rather than genuine innovation, and this approach is unlikely to yield the same level of success as the original pioneers in the field. His post read,
“I love it when I see legacy finance come together with Canton and try to build what XRP and Midnight are already doing at a scale 100x beyond their ambitions. These guys never learn and don’t understand what makes Web3 unique and meaningful.”
Why XRP and Midnight?
Charles Hoskinson has always been a key advocate of Ripple’s XRP token. According to him, XRP is a “global standard.” When referencing XRP, Charles Hoskinson highlights its strengths in high-speed, low-cost, cross-border payments at an institutional scale. XRP’s core features, such as near-instant settlement times, minimal transaction costs, deep liquidity infrastructure, etc., make it an attractive option for institutions and individuals alike.
Interestingly, Charles Hoskinson’s mention of Midnight also highlights his critique of legacy finance. Midnight is a privacy-focused blockchain project developed by Input Output Global, the company behind Cardano.
With this reference, Charles Hoskinson is highlighting the project’s innovative approach to privacy-enhanced transactions, chain abstraction, and smart compliance. Midnight represents a new frontier in blockchain technology. By grouping Midnight with XRP, Charles Hoskinson is emphasizing the importance of these innovative technologies, implying that TradFi’s attempts to copy them will be futile without a deep understanding.
In essence, Charles Hoskinson says that XRP and Cardano have already overcome the challenges that traditional finance is just beginning to acknowledge. He believes that if TradeFi truly intends to build similar systems, they will not try to reinvent the same, but will integrate the existing solutions that already work. His tweet conveys the idea that Web3’s success stems from its ability to execute, adapt, and endure, rather than relying on mere marketing campaigns.
