Hoskinson: Don’t Sell ADA for NIGHT — Midnight Extends, Doesn’t Replace Cardano
Cardano founder Charles Hoskinson told the Discover Crypto podcast that Midnight (NIGHT), a newly airdropped privacy-focused token, is designed to extend Cardano’s functionality — not replace ADA. He described Midnight as a “ChatGPT of privacy,” an infrastructure module that brings privacy features to Cardano-native apps and can help smaller projects compete with larger DeFi incumbents. Hoskinson argued Midnight will enable privacy-preserving yield and credit, potentially drawing Bitcoin-linked capital into Cardano DeFi because both Bitcoin and Cardano use the UTXO model. He emphasized that ADA holders received preferential access in the NIGHT distribution and that Cardano secures Midnight, tying ADA holders to the new network. On price, Hoskinson avoided targets but suggested a structural path for capital “leakage” from Bitcoin into other ecosystems via Bitcoin DeFi rather than spot rotations. At publication ADA traded at $0.36. Key SEO keywords: Cardano, ADA, Midnight, NIGHT token, privacy DeFi, Bitcoin DeFi, airdrop.
Bullish
Hoskinson’s remarks reduce immediate risk of ADA sell pressure from the NIGHT airdrop by framing Midnight as complementary infrastructure rather than a replacement token. Key bullish drivers: 1) Narrative containment — prominent founder messaging can calm short-term uncertainty and prevent large-scale rotation out of ADA. 2) Economic linkage — Cardano securing Midnight and preferential airdrop allocation to ADA holders aligns incentives, encouraging holders to retain ADA. 3) Growth thesis — positioning Midnight as a privacy layer that could attract Bitcoin-linked capital into Cardano DeFi introduces a structural route for capital inflows beyond retail rotations. Historical parallels: previous ecosystem airdrops (e.g., Uniswap airdrop) initially pressured or redistributed value but founder/ecosystem integration and staking/security ties often limited net outflows and supported mid-term price resilience. Short-term impact: likely neutral-to-mildly bullish as uncertainty eases and traders reassess sell-side risk. Volatility may spike on on-chain distribution events. Long-term impact: potentially bullish if Midnight adoption drives TVL and real yield opportunities that attract BTC-denominated capital; downside risks remain if adoption lags or privacy features face regulatory headwinds. Traders should watch NIGHT distribution flows, Cardano TVL metrics, and BTC-to-Cardano liquidity movement as leading indicators.