Hoskinson Unveils Next Step Over Cardano And XRP Omission In Wyoming

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As a seasoned analyst with years of experience in the cryptocurrency market, I find myself increasingly concerned about the recent developments surrounding the Wyoming Stable Token (WST). The exclusion of prominent blockchain networks such as Cardano and Ripple’s XRP Ledger from the WST selection process raises serious questions about the transparency and fairness of the procurement process.

Charles Hoskinson, Cardano‘s creator, has openly expressed his disapproval towards the Wyoming Stable Token Commission’s latest choices for the state’s upcoming stablecoin, the Wyoming Stable Token (WST). During a live stream named “XRP and Wyoming,” held on November 25, 2024, Hoskinson voiced his doubts about the commission’s unclear selection methodology and expressed worries over possible conflicts of interest.

The Wyoming Stable Token Commission has begun seeking suitable providers for the creation, distribution, and administration of WST – a new stable token expected to debut in 2025, marking the first instance of such a token issued by a U.S. public entity with assets backing its value. The commission aims to collaborate with competent third-party companies to support the development, implementation, and maintenance of WST and its underlying reserves.

The blockchain networks chosen for the initial setup are: Solana, Avalanche, Stellar, and Ethereum, along with Layer 2 networks such as Polygon, Arbitrum, Base, and Optimism. This decision was made by the commission’s Blockchain Selection Working Group, a process that Charles Hoskinson found to be “quite secretive.

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Charles Hoskinson showed surprise at the omission of well-known blockchain networks like the XRP Ledger and Cardano from the chosen list. He pointed out Ripple‘s RLUSD and raised questions about why Stellar was selected over Ripple, considering their shared past and Ripple’s significant market influence.

It seems that Hoskinson pointed out that Stellar has capabilities that Ripple does not, based on the evaluation criteria. Recently, Ripple unveiled RLUSD, and as far as I’m aware, when considering market cap, if we look at XRP—it forms an $84 billion ecosystem with approximately $12 billion in trading volume.

Among the many promising cryptocurrencies such as Cardano ($34 billion market cap), Algorand, Tezos, and Aptos, which have interesting ecosystems, none were considered for inclusion in this particular project. According to Hoskinson, these projects weren’t even given a chance to showcase their potential by presenting a proof of concept.

Hoskinson implied that certain relationships from the past could potentially have impacted the selection process within the commission. Specifically, he noted that the Executive Director of the Wyoming Stable Token Commission, Anthony Welfare, was previously employed by ConsenSys and has ties to the Polygon network.

Hoskinson pondered, “It seems like there might be some tension between ConsenSys and Ripple, doesn’t it?” He also pointed out that one of the commissioners had previously worked for Circle, a company recognized for its stablecoin, USDC. “Circle has announced support for Circle; in fact, I believe all the chains they announced were Circle-related—every single one of them. It’s intriguing how that aligns.

As an analyst, I observed that Hoskinson suggested a concern about the selection process potentially favoring networks linked with Circle and ConsenSys, which could lead to an unjust competitive edge. In other words, he expressed disapproval towards the use of public funds to intentionally bolster the position of specific companies or ecosystems under the guise of an open and fair process.

Cardano’s creator, Hoskinson, voiced his concerns over the commission not adhering to standard acquisition practices. These practices usually entail making public both functional and non-functional product specifications, giving potential participants a chance to showcase their ideas by submitting proofs of concept. He emphasized that this process seemed opaque and denied networks excluded from it a chance to exhibit their competencies.

Transparent dealings are what we expect when dealing with the government in the future, Hoskinson stated. “We’ve been disqualified and haven’t been given the chance to bid on projects. We didn’t lose a tender; we were excluded from the competition altogether.

He implied that the exclusion could lead to potential lawsuits, explaining, “It’s possible there could be a group lawsuit since anyone left out would have the right to bring a case. This situation grants an unjust competitive edge to the chosen chains and puts the ones not chosen at a disadvantage.

Additionally, Hoskinson pointed out the omission of Bitcoin, the dominant cryptocurrency in terms of market capitalization. He emphasized that through Cardano’s initiative known as Bitcoin Operating System (BOS), a chance exists for Bitcoin to introduce its initial stablecoin using WST.

“He noted that due to Cardano’s collaboration with BOS (Bitcoin Operating System), Cardano provides Bitcoin with its initial stablecoin opportunity. However, it was determined on these grounds not to include Bitcoin—the undisputed leader in the cryptocurrency world and the only one being considered by President Trump for a strategic reserve.

Hoskinson invited the XRP community to work together on resolving the issue, stating, “XRP community, you’ve got the solution and so do we.” He urged them, “We will find a way to rectify this situation.” He underscored the importance of maintaining fairness and transparency in government-backed cryptocurrency projects.

Hoskinson expressed that we no longer accept such practices. He emphasized that by 2025, transparency is key in our interactions with the government, and obscure procedures are not an option. Instead, we will be evaluating entities ourselves and openly disclose those who meet the criteria.

At press time, ADA traded at $0.9785.

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2024-11-26 20:42