Since Midnight launched, the Cardano community hasn’t stopped talking about it. The project came out strong, with high trading volume and plenty of attention thanks to ongoing promotion from Charles Hoskinson and other well-known Cardano voices.
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?
That discussion quickly turned into speculation, with some people even wondering whether NIGHT could eventually replace ADA. With privacy-focused smart contracts becoming a big narrative, the concern wasn’t surprising. Still, Hoskinson has now stepped in to clear things up.
What you'll learn 👉
Hoskinson Says ADA and NIGHT Are Not Competitors
During a recent episode of the Discover Crypto podcast, Hoskinson directly addressed the growing confusion. His message was simple and clear. 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.
That distinction changes how Midnight should be viewed. Rather than being a rival asset, NIGHT functions more like an add-on that helps Cardano grow without disrupting its core structure.
#Cardano Founder Says $ADA Holders Don’t Need to Sell ADA for #NIGHT.
— TheCryptoBasic (@thecryptobasic) December 25, 2025
Cardano founder Charles Hoskinson has responded to questions from community members about whether they should sell ADA to buy Midnight (NIGHT).
Since Midnight’s introduction, its development team, alongside… pic.twitter.com/wCD7fZHpF2
What Midnight Actually Brings to Cardano
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.
Why ADA Holders Matter in Midnight’s Launch
Hoskinson also pointed to how Midnight chose to roll out its token distribution. 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.
Read Also: Here’s How Much 1,000 Cardano (ADA) Could Be Worth in 2030
That decision wasn’t accidental. It was meant to show that Cardano is Midnight’s priority, not just another network on a long list. For ADA holders, this structure reinforces the idea that Midnight was built to strengthen Cardano rather than pull value away from it.
What This Means Going Forward
Hoskinson’s comments are meant to calm fears and reset expectations. ADA remains the foundation of the Cardano network, while Midnight adds a privacy layer that could help Cardano applications compete more effectively.
Instead of forcing a choice between ADA and NIGHT, the message is that the ecosystem is expanding by adding new tools. For now, that clarity may help shift the conversation away from replacement fears and back toward long-term development.
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