Cardano ($ADA) Founder Charles Hoskinson Backed the Allegations Against Circle of Misusing Market Dominance to Harm the Competitors and They Explored Ripple Stablecoin ($RLUSD) as a Better Option

Cardano ($ADA) founder Charles Hoskinson also responded to these allegations and said that he already talked about these unethical practices by top stablecoin firms

Cardano ($ADA) founder Charles Hoskinson has backed up allegations against stablecoin issuer Circle, suggesting that they are abusing their market dominance to the detriment of competitors. In response, Hoskinson has proposed Ripple's stablecoin ($RLUSD) as a more suitable alternative for Cardano and other emerging crypto projects.

Highlighting the challenges faced by smaller crypto projects in adopting USDC, a Cardano enthusiast recently took to X (formerly Twitter) to elaborate on how Circle is allegedly cheating other ventures. The user pointed out several issues with Circle, including:

* High fees charged by Circle for integrating USDC into a blockchain network, making it financially challenging for smaller and developing blockchains to support USDC.

* Draining liquidity from other chains: After a blockchain pays high fees to integrate USDC, Circle allegedly fails to support liquidity (money flow) on that chain, instead diverting funds to their preferred crypto blockchain network, such as SUI, a crypto blockchain fractionally owned by Circle.

* False promises to other blockchains: Before integrating USDC, the Circle team reportedly makes vague promises to other blockchain projects interested in adopting USDC, such as Polkadot and Algorand, about increasing trading activity and liquidity. However, after paying millions of dollars, these projects do not see any substantial benefits.

* Conflicts of interest with SUI Blockchain: Some major crypto blockchains that adopted USDC by paying millions noticed funds moving out to SUI. Later, it was discovered that Circle has a stake in SUI. This suggests that they may be using their monopoly to direct liquidity away from competitors and towards their own network.

* Extremely high costs to maintain USDC liquidity: Evidence indicates that a crypto project needs at least $30 million to make USDC useful on their blockchain. The cost of getting USDC integration itself is $15 million. So, ultimately, a crypto blockchain needs at least $45 million just to make USDC usable. This large sum could be better utilized by a project for a higher level of development activities.

The crypto X user who raised these allegations against Circle has suggested adopting Ripple's stablecoin ($RLUSD) instead. They noted several benefits offered by Ripple, a San Francisco-based blockchain company:

* Lower cost of entry: Ripple's RLUSD does not impose high fees to integrate into a blockchain, enabling Cardano and other crypto networks in an early stage of growth to adopt it without spending millions.

* Support for liquidity growth: Ripple has a systematic plan to provide an incentive to fund liquidity on the Blockchain network to ensure $RLUSD is actively used. If Ripple stablecoin adoption fails on any new network, they will work to make it successful.

* Backed by a trusted entity: RLUSD stablecoin is backed by a well-established company in this innovative space and has strong connections in the crypto & non-crypto financial industry. This means that the integration of this stablecoin provides an edge in gaining adoption.

* Legal protection in the U.S.: As Ripple is a U.S.-based company, all the Ripple stablecoin users and businesses have direct legal recourse in the US jurisdiction if anything goes wrong. If Circle goes bankrupt or engages in fraud, then USDC Stablecoin users have to deal with complex foreign legal systems, making it very rare to recover the lost funds.

* Forcing USDC & Tether to compete fairly: The crypto X user suggested Cardano to adopt $RLUSD as the top priority because it might force Circle and Tether to enter for free to stay competitive. In this way, Cardano & also other new emerging crypto projects save themselves from paying massive fees just to bring stablecoins into their ecosystem.

Cardano founder Charles Hoskinson also responded to these allegations, stating that he has previously discussed these unethical practices by major stablecoin companies, which are harming crypto projects. Hoskinson also raised questions related to Hard Fork development, noting that such companies get to decide whether or not to support a particular Hard Fork, which is currently a lived reality for the Ethereum blockchain.

Earlier this three times Cardano founder talked about his interest in the integration of Ripple stablecoin in the Cardano ecosystem.

From time to time, many crypto X users raised questions against the leadership of the Cardano crypto project and asked why they’re failing to bring top stablecoins into the Cardano blockchain ecosystem. At the time, Hoskinson didn’t talk about these challenges but talked indirectly. Also, some projects in the Cardano blockchain ecosystem tried to bring USDC & USDT like top stablecoins in the Cardano Defi environment, but later, no results surfaced to the practical level.

The circle is using its monopoly power to generate huge earnings in the form of fees, control liquidity, and favour its own blockchain investments like SUI. On the other hand, crypto networks like Cardano, Polkadot, and Algorand end up losing money with no real benefits.

In this critical situation, Ripple’s $RLUSD is emerging as a better alternative for developing crypto projects or for those who are