In the last two weeks, Ripple’s XRP naysayers have launched an onslaught on the token’s contribution to the crypto industry. They are seemingly unhappy with XRP’s name being floated around President Donald Trump’s proposed US federal crypto stockpile, as some believe Ripple’s native token is “not a crypto.” A series of recent posts by prominent industry figures have reignited debates about XRP’s place in the blockchain ecosystem. In a January 24 post on X, Pierre Rochard, VP of Research at Bitcoin mining company Riot Platforms, shared a screenshot of a thread originally posted in 2020 by crypto commentator Nic Carter, who made scathing remarks about Ripple’s digital asset. Carter’s posts labeled XRP as “neither a cryptocurrency nor a viable competitor to Bitcoin,” arguing it lacks meaningful decentralization or utility. “ There’s absolutely no comparing XRP with Bitcoin, ” Carter wrote. “ It’s not ‘cheaper’ than Bitcoin or more energy-efficient because it’s not remotely in the same category. The same way you can’t compare an Excel doc on my laptop with Bitcoin. ” XRP use cases under question In his December 2020 thread, Carter criticized XRP’s purported “centralized nature,” describing it as “literally a token on a database maintained by a single entity,” which, in the context, represented Ripple Labs. He went so far as to liken XRP to “an IOU on the Starbucks app,” arguing that the token is not fully built on a decentralization principle, which undermines its legitimacy as a crypto. Carter also targeted XRP’s primary use case as a bridge currency for cross-border remittances. He claimed this purpose has been rendered obsolete by the adoption of stablecoins, which are less volatile and more practical for such transactions. “ No one wants to use a volatile, illiquid, thinly traded asset as a bridge currency, ” Carter stated. “ The only use case is lowering the cost of capital for Ripple Labs. ” The crypto critic, who is also against the idea of creating a national strategic Bitcoin reserve, accused Ripple of using XRP to inflate its value artificially, alleging that the company engaged in partnerships designed to excite retail investors and drive up the token’s price. “ The SEC should see through the smokescreen and perceive XRP for what it is—a shallow fraud. ” Bitcoin advocates double down on XRP criticism Several users on X agreed with Rochard’s sentiments, with some echoing Carter’s claims of XRP being a “fraudulent” asset meant to fatten Ripple Labs’ pockets. One user shared a screenshot of an explainer that showed the tokenomics of XRP. The screenshot alleges that Ripple Labs withheld 80% of XRP’s total supply when it launched in 2013. Retailers could only access the withheld supply through the Bitstamp crypto exchange from January 2017. They apparently employ over 1k people…?! sus I 'member this… The initial distribution was 80/20 in June 2012 and it was impossible to get any as a 'retailer' until 5 years later (Bitstamp, January 2017). The very fact that any of these events happened = DQ. pic.twitter.com/W9npWWcmj7 — mikethespacecat (@2salt2furious) January 23, 2025 In a quoted response to Rochard’s post, another Bitcoin advocate disclosed some pointers from Saifedean Ammous’s The Bitcoin Standard book. The post explained how the author discussed the fundamental differences between Bitcoin and XRP in chapters, 7, 8, and 9. In Chapter 7, Ammous explained how Bitcoin’s model makes the network independent, decentralized, and immutable. Analysts pointed out that XRP fails to achieve this due to Ripple Labs’ control over its supply. The next chapter further critiques fiat systems and centralized financial models. Critics assert the system is similar to XRP’s model and claim the token is an extension of the very structures BTC was designed to disrupt. Finally, chapter 9 focuses on Bitcoin’s proof-of-work mechanism, which ensures decentralization and censorship resistance. XRP critics insist XRP relies on centralized validators, which Ripple Labs could allegedly take advantage of to manipulate price. Cryptopolitan Academy: How to Write a Web3 Resume That Lands Interviews - FREE Cheat Sheet
