The XRP community has found itself at the center of a heated debate after sharp comments from well-known on-chain investigator ZachXBT. His remarks have raised bigger questions about whether insiders gain more than everyday investors.
Let’s take a closer look at what sparked the controversy.
No More Support for XRP?
In a now-deleted post on X, ZachXBT said that although he once stepped in to help resolve an XRP Ledger exploit that led to theft, he has no plans to support the community again.
According to him, Ripple holders haven’t added any real value to the crypto industry beyond serving as “exit liquidity”.
For context, exit liquidity means newer investors end up buying tokens from early insiders, which gives those insiders a chance to cash out profits.
It’s Not Just XRP Under Fire
XRP holders were not the only target of his remarks. ZachXBT also grouped Cardano (ADA), Pulsechain, and Hedera in the same category, saying they, too, contribute little of real substance to crypto.
“Ripple holders provide nothing of value to the industry except exit liquidity for insiders, thus are not worth supporting (likewise with Cardano, pulsechain, Hedera, etc),” he shared.
When challenged by users, he said that he refuses to support “MLM chains”, which are projects that operate more like multi-level marketing schemes than real innovations. These networks thrive on hype and retail promotion, mainly benefiting early insiders while leaving later investors holding the bag.
Spotlighting Chris Larsen’s XRP Transfers
This is not the first time ZachXBT has criticized XRP and its leadership. He has repeatedly highlighted large insider token movements, particularly those tied to Ripple co-founder Chris Larsen.
Between July 17 and 24, Larsen-linked wallets shifted 50 million XRP (about $175M), with around $140M sent to exchanges, a move which is often seen as cashing out.
The timing raised eyebrows, as the move came just as XRP rose to $3.60 before dropping below $3.10.
Back in January as well, he had pointed out that more than $109M in XRP had been moved to exchanges from a wallet originally set up by Chris Larsen.
” I guess it’s a good thing no one stalks XRP transfers from wallets tied to the founders/foundation,” he had said.
This concern ties into a broader discussion about fairness in crypto markets.
XRP Pushes Forward Despite Criticism
Despite the criticism, XRP continues to push forward. With the SEC lawsuit finally settled, rising optimism around potential spot XRP ETFs, and new products like the XRP rewards credit card, it is showing real signs of growth.
At the time of writing, XRP is trading at $3.01, up 0.3% in the last 24 hours.
Remarks like ZachXBT’s serve as a sharp reminder of the industry’s lingering doubts about XRP and other major altcoins.
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FAQs
On-chain investigator ZachXBT stated he would no longer support XRP, claiming its holders provide no value beyond being “exit liquidity” for insiders to cash out profits.
He uses the term “MLM chains” to describe projects that operate like multi-level marketing schemes, thriving on hype to benefit early insiders at the expense of later investors.
He pointed to Ripple co-founder Chris Larsen moving 50M XRP (~$175M) to exchanges, often seen as cashing out, coinciding with a price drop from $3.60.
Yes, XRP is trading around $3.01 with growing optimism from its settled SEC lawsuit, potential spot ETF, and new products like an XRP rewards credit card.
