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SEC’s Hinman: Favoritism or Corruption? Hoskinson vs. XRP Community

2 mins
Updated by Ryan James
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In Brief

  • Charles Hoskinson, Cardano's founder, dismisses XRP community's conspiracy theories about Ethereum favoritism.
  • Ripple's CTO, David Schwartz, counters Hoskinson's claims, defining government favoritism as a form of corruption.
  • Some XRP community members accuse Hoskinson of deflecting attention from his potential involvement in ETHGate.
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Cardano’s founder, Charles Hoskinson, remains vocal about the XRP community’s conspiracy theories concerning Ethereum. However, Ripple’s CTO countered that there might be hints of corruption involved in the case.

In an October 14 post on X(formerly Twitter), Hoskinson taunted the XRP community with comments about “ETHGate,” continuing a trend that began earlier in the week.

Hoskinson Taunts XRP Community

On October 8, the Cardano founder held an Ask Me Anything (AMA) session, arguing that corruption did not motivate SEC’s former director William Hinman’s classification of the digital asset as a non-security.

He said Hinman’s action should be described as “favoritism” and not corruption, adding that the XRP community has no evidence to prove their conspiracy theories. He added:

“What evidence do you have of that? Where are the emails? Where are the meetings?…None of that activity presupposes corruption, just favoritism.”

Ripple CTO describes Hoskinson’s favoritism claim as corruption 

Hoskinson’s remarks generated heated responses from several XRP community members, including Ripple’s chief technology officer, David Schwartz.

In an October 12 post on X, Schwartz argued that a “government actor showing favoritism [aligning] with the personal interests of themselves and their friends is corruption.”

This sentiment was also shared by several members of the XRP community, who suggested that Hoskinson might be trying to take attention away from the scandal. One X user said:

“By minimizing the severity of the commissioner’s actions and reframing them as mere favoritism, the antagonist here is attempting to distort the perceived reality and potentially deflect blame or criticism away from the more serious implications of corruption.”

Additionally, some community members suggested that Hoskinson’s continued remarks could be an attempt to cover his role in the ETHgate. Hoskinson is one of the eight co-founders of Ethereum, including Vitalik Buterin, Gavin Wood, Joseph Lubin, and others.

Hoskinson’s Frayed Relationship With XRP Community

Hoskinson’s latest comments are entirely not surprising considering his frayed relationship with the XRP community.

Last year, the Cardano founder vowed not to discuss Ripple-related subjects because the XRP community was toxic and petty. He would later walk back this statement after the SEC classified Cardano as a security earlier this year.

However, the recent remarks suggest that they are at loggerheads again.

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Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.