As NIGHT started climbing, a familiar question popped up across social media and community chats: should ADA holders sell their ADA to get exposure to Midnight?
Hoskinson has now stepped in to clear things up.
ADA holders don’t need to sell their tokens to buy NIGHT, because Midnight was never designed to replace ADA in the first place.
According to Hoskinson, ADA and NIGHT play different roles inside the Cardano ecosystem.
ADA is still the foundation of the system, while Midnight is there for enhancing the capabilities the Cardano apps offer.
They are supposed to complement each other instead of trying to prove their relevance together.
Rather than being a rival asset, NIGHT functions more like an add-on that helps Cardano grow without disrupting its core structure.
Cardano founder Charles Hoskinson has responded to questions from community members about whether they should sell ADA to buy Midnight (NIGHT).
Hoskinson described Midnight as the “ChatGPT of privacy” for Cardano decentralized applications.
In a nutshell, what Midnight gives to developers is the ability to easily implement a privacy mechanism on their applications.
The hope is that this is something that is easier and more accessible to developers but still has something to offer in terms of compliance.
While Midnight is expected to work with multiple blockchain technologies in the future, Hoskinson expects Cardano dApps to be the earliest adopters.
This could give a competitive advantage to projects built on the Cardano blockchain, since users’ need for privacy is increasing every day.
Out of NIGHT’s total supply of 24 billion tokens, half was allocated directly to ADA holders.
The remaining supply was shared across seven other blockchains, including Bitcoin and the XRP Ledger.
For ADA holders, this structure reinforces the idea that Midnight was built to strengthen Cardano rather than pull value away from it.
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