Cardano Founder Says ADA Holders Don't Need to Sell ADA for NIGHT

Source: CryptoNewsNet Original Title: Cardano Founder Says ADA Holders Don’t Need to Sell ADA for NIGHT Original Link:

Hoskinson Clarifies NIGHT’s Role

Cardano founder Charles Hoskinson has responded to community questions about whether holders should sell ADA to buy Midnight (NIGHT). Since NIGHT’s introduction, its development team has actively promoted the project across multiple platforms, positioning it as a solution for building privacy smart contracts. Interest surged further after NIGHT debuted on exchanges, recording substantial trading volume.

Given the successful launch and sustained promotion, speculation has intensified. Community members now ask whether selling ADA for NIGHT makes sense, with some even suggesting that NIGHT could replace ADA.

Hoskinson addressed this during a recent podcast episode, clarifying that NIGHT was designed to extend ADA’s capabilities, not replace it. According to him, the two tokens complement each other, serving distinct purposes within the ecosystem.

Specifically, Hoskinson said Midnight’s core role is to function as the “ChatGPT of privacy” for Cardano decentralized applications. In practice, Midnight provides a privacy infrastructure that enables Cardano dApps to operate with enhanced confidentiality.

First-Mover Advantage for Cardano

While Hoskinson expects Midnight’s adoption to span multiple blockchain networks, he believes Cardano dApps will lead the way as the earliest adopters of Midnight’s privacy solutions. In his view, Midnight will give dApps on Cardano an edge in competing for users.

Another key benefit Hoskinson highlighted is Midnight’s decision to prioritize Cardano by rolling out its features to the network first. He pointed to the NIGHT airdrop as clear evidence of this approach, noting that ADA holders received the largest allocation.

Specifically, 50% of NIGHT’s total 24 billion supply went to ADA holders, while the remaining seven blockchains shared the remainder.

Bitcoin DeFi as a Capital Source

Hoskinson then broadened the discussion by outlining a cross-chain liquidity thesis, identifying Bitcoin DeFi as a major potential source of future capital inflows into Cardano.

He recalled a previous projection in which he suggested that Bitcoin DeFi’s total value locked (TVL) could eventually surpass Ethereum’s entire market capitalization, which stood at around $520 billion at the time.

He described Bitcoin as largely agnostic capital, not bound by loyalty to any single blockchain. Instead, Bitcoin liquidity tends to flow toward ecosystems that offer the most accessible yield opportunities, credit markets, and real-world utility.

From this perspective, Hoskinson argued that Cardano stands out as a natural destination. He cited its UTXO-based model, which closely aligns with Bitcoin’s own architecture and reduces friction for cross-chain participation.