Hoskinson Backs Ripple-Circle Deal to Break “Coinbase A16Z Circle Mafia”

• Charles Hoskinson backs Ripple buying Circle, says it breaks the Coinbase-A16Z monopoly.
• Ripple may offer $11 billion for Circle, double the original offer made in April.
• Hoskinson claims crypto elites blacklist outsiders and wants Ripple to shake it up.

Cardano founder Charles Hoskinson has voiced strong support for Ripple’s potential acquisition of Circle. He argued the deal would break up what he describes as a monopolistic ecosystem dominated by Coinbase and A16Z. In a Sunday AMA session on YouTube, Hoskinson stated the acquisition would improve the crypto sector.

“There’d be antitrust concerns with the Ripple acquisition of Circle. I think it’d make the space better,” Hoskinson stated in the video. He criticized the current market structure and claimed that a coordinated network has created barriers for projects outside their circle.

According to Hoskinson, a “Coinbase A16Z Circle mafia” has built an ecosystem that serves its own interests while excluding external participants. “If you’re 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 stable coin,” he explained.

Acquisition Talks Reportedly Reach $11 Billion

According to sources, it was first revealed in late April that Circle rejected a $5 billion purchase offer from Ripple. This is because they considered the proposal too low. During the AMA, Hoskinson said he had received claims that Ripple was now prepared to pay up to $11 billion.

This increased offer would value Circle at more than double the initial proposal. This shows Ripple’s serious commitment to completing the transaction.

Related: “Bye-Bye Circle”: Arthur Hayes Warns of Wall Street’s Stablecoin Takeover

Both Ripple and Coinbase currently compete as top contenders for acquiring Circle. However, Coinbase appears to have advantages due to its extensive existing ties with the company.

Circle filed for an initial public offering in early April and suggested the company still intends to go public despite ongoing acquisition discussions. The dual track of IPO preparation and acquisition talks provides Circle with multiple strategic options.

Hoskinson Backs Ripple as the Ideal Custodian

Hoskinson expressed confidence that Ripple would serve as a better custodian for Circle’s business compared to current industry players. “By XRP coming in, it breaks apart that monopoly and creates more diversity. And I think there’ll be a better custodian and frankly, higher integrity than some of the people, especially on the circle side,” he stated.

The Cardano founder’s comments suggest he views Ripple as having stronger ethical standards and business practices compared to existing market participants. The potential acquisition could change the stablecoin market, particularly if Ripple integrates USDC deeply with its payment solutions and XRP ecosystem.