Circle Acquisition Race Intensifies; Why Cardano's Charles Hoskinson sides with Ripple

Charles Hoskinson, the founder of Cardano, has made his position clear on the Coinbase and Ripple saga, amidst rumors that both firms were vying to acquire stablecoin issuer Circle.

In a recent YouTube video titled “Ask Me Anything,” the Cardano boss expressed support for Ripple, explaining that the payment firm’s acquisition of Circle can strengthen the cryptocurrency ecosystem.

“There’d be antitrust concerns with the Ripple acquisition of Circle. I think it’d make the space better.” He asserted.

Hoskinson remains critical of the current cryptocurrency ecosystem, explaining that combined efforts have been made to centralize the space, making it difficult for projects outside these in-groups to thrive.

Hoskinson, who stated that a “Coinbase A16Z Circle mafia” is dedicated to creating an exclusive network within the crypto ecosystem, is quoted as saying;

“And if you are outside of it, you get completely blacklisted, and it’s hard to get listed, it’s hard to get liquidity, and it’s hard to get a stablecoin.”

Sheraz Ahmed, the managing partner at blockchain consulting firm STROM Partners, who shares Hoskinson’s sentiments, remarked that the acquisition of Circle and other potential future acquisitions are signaling a shift in the market.

Crypto officials amplify centralization concerns

Speaking to Blockwork’s Katherine Ross, Ahmed explained that a “few dominant players are absorbing the best tech.” While the move legitimizes the crypto space, it raises concerns about decentralization, he asserted.

The conversations follow rumours that Coinbase and Ripple are bidding to acquire Circle.

Ryan Rasmussen, the head of research at Bitwise, told Blockworks that Circle offers attractive opportunities that he believes will prompt Coinbase to go after the stablecoin issuer.

“They already clearly leaned into USDC as the go-to stablecoin across the Base ecosystem, and really across Coinbase…You get yield on USDC just for holding it in your account. So I think from an issuer perspective, it makes a lot of sense.”