Cardano founder Charles Hoskinson answered a question from a community member about whether he should sell his ADA to buy Midnight (NIGHT).
Since Midnight’s introduction, its development team, along with Hoskinson, have been actively driving the project across multiple platforms. They are positioning it as a solution that allows developers to build privacy smart contracts. Interest has further increased since NIGHT debuted on exchanges earlier this month, hitting new highs and posting significant trading volumes.
Speculation has intensified given the successful launch and continued promotion by Hoskinson and other prominent Cardano figures. Community members are now questioning whether it makes sense to sell ADA for NIGHT, with some suggesting that NIGHT could replace ADA.
Mr. Hoskinson disagrees.
Hoskinson addressed this issue on a recent episode of his podcast “Discover Crypto.” He clarified that NIGHT was designed to enhance the capabilities of ADA, not to replace it. According to him, the two tokens complement each other and serve different purposes within the ecosystem.
Specifically, Hoskinson said Midnight’s core role is to serve as the “ChatGPT of privacy” for Cardano decentralized applications. In fact, Midnight provides the privacy infrastructure that allows Cardano dApps to operate with increased confidentiality.
Cardano gains first mover advantage
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 advantage in the competition for users.
Another key advantage Hoskinson highlighted is Midnight’s decision to prioritize Cardano by rolling out features to its network first. He cited the evening airdrop as clear evidence of this approach, noting that ADA holders received the largest allocation.
Specifically, 50% of NIGHT’s total supply of 24 billion was distributed to ADA holders, while the remaining seven blockchains, including Bitcoin and the XRP ledger, shared the rest.
Positioning Bitcoin DeFi as a suitable destination
Hoskinson then expanded the discussion by outlining a broader cross-chain liquidity theory and identified Bitcoin DeFi as a key potential source of future capital inflows to Cardano.
He recalled a previous prediction that suggested Bitcoin DeFi’s Total Value Locked (TVL) could eventually exceed Ethereum’s entire market cap, which was around $520 billion at the time.
He described Bitcoin as an almost agnostic capital, unbound by loyalty to a single blockchain. Instead, Bitcoin liquidity tends to flow to ecosystems that provide 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 a UTXO-based model that works closely with Bitcoin’s own architecture and reduces the friction of cross-chain participation.
