ZACHXBT Slams XRP, Calls Holders ‘Exit Liquidity’

Key Highlights:

• ZachXBT slams Ripple and states that it provides no value to the industry.
• The blockchain investigator also targeted other blockchains such as Cardano, Hedera and Pulsechain.
• Mixed reaction received from the community.

ZachXBT, a well-known blockchain sleuth, is back in the news for dismissing the XRP community and its entire ecosystem. The sleuth’s comment surfaced after a deleted thread on X (formerly known as Twitter) was spread by a well-known news outlet amplifying the tweet to a wider audience.

How did it all begin?

The entire controversy began with a now-deleted post in which ZachXBT clarified that he does not currently assist the XRP community and was planning to make fun of anyone that sent him DMs regarding the same.

Another user proceeded to question him further and asked as to what had the XRP community done to him. ZachXBT’s reply was something that caused an explosion. He said that Ripple holders do not add any real value to the industry and they act as exit liquidity, which means that their money allows insiders such as early investors, project founders, big holders to cash out the profit. From this narrative, it is clear that ZachXBT thinks that the blockchain is not pushing innovation, building useful tech, or advancing the industry, they are keeping the price afloat so that the insiders can sell easily.

The XRP community took offence and triggered a heated debate on the social media platform. A few of the platform users even asked him why he felt so strongly regarding this matter. To this, ZachXBT replied that he consciously tries to avoid, reject multi-level marketing chains (MLMs).

Ripple Foundation Accused of Abandoning Public Goods

After the well-known outlet highlighted the comment, ZachXBT, provided a detailed explanation regarding the same and explained that the root of the problem was structural. In his post, he commented that if a large amount of crypto has been stolen, according to him, the best step is to file a complaint with the IC3 (Internet Crime Complaint Centre that is run by the FBI in the U.S.). The stolen funds can then sometimes be traced when they move through the exchanges. He is also seen to be criticizing Ripple’s foundation saying that it does not spend money to fund resources that could help and educate its users. With this statement, the sleuth is implying that other foundations such as Ethereum or Solana do a better job at supporting their communities with education, tools or protection.

With this explanatory comment, he also warned the users that self-custody can be a risky task, if they do not understand the industry well. Scams, phishing, and mistakes are very common, and hence it is necessary that people educate themselves first before trying to manage their own wallets.

The response above also suggested that there is a lack of organized consumer protection within the XRP community. The victims do not have a clear path through which they can freeze funds instantly and or blacklist the malicious address.

Other Targets

In this post, the blockchain investigator also managed to drag in other blockchains such as Cardano (ADA), Pulsechain, Hedera (HBAR). For all of these blockchains, he accused them of providing little or no value to the industry and served as exit liquidity for founding teams and insiders.

Market Reaction

These comments by ZachXBT shook the entire XRP community. However, the price of the token was not affected. At press time, the price of the token stands at $3.00 with an uptick of 0.1% in the last 24 hours as per CoinGecko.

On the social media platform X (formerly known as Twitter), people’s mood toward XRP turned sharply negative. However, some of the crypto community members or the XRP army pushed back saying ZachXBT was being unfair as scams happen everywhere in crypto and not just with Ripple.

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