XRP is currently trading around $2.90, with minimal daily downward movement but a 3% gain over the past week and a 35.4% increase over three months, indicating a steady uptrend.

Recent on-chain data suggests a potential breakout, driven by significant whale activity and shrinking exchange balances. Since mid-August, whale wallets holding 10 million to 100 million XRP have accumulated 250 million tokens, valued at approximately $750 million, signaling confidence in future price increases.

Additionally, exchange reserves have dropped 13.3% in three weeks to a one-year low of 3.27 billion XRP, reducing immediate selling pressure as investors move tokens to private wallets. Technically, XRP faces resistance at $3.01, with a breakout above $3.33 potentially targeting the all-time high of $3.65.

However, some posts on X indicate mixed whale activity, with 470 million XRP sold in the last 10 days, suggesting possible profit-taking or rotation into other assets like Chainlink. Despite this, the overall sentiment remains bullish, supported by historical patterns where low exchange balances preceded rallies. Investors should watch trading volume and the $3.33 level for confirmation of a breakout.

ZachXBT’s claim that XRP holders primarily serve as a vehicle for insiders to cash out suggests that retail investors may be left holding depreciating assets. This narrative can undermine trust in XRP, potentially deterring new investors and prompting existing holders to sell, especially during periods of price consolidation.

The accusation amplifies skepticism about XRP’s value proposition, particularly given its historical association with Ripple’s centralized control over supply, which could suppress price growth if retail investors perceive it as a manipulated asset.

The “exit liquidity” label implies that large holders (e.g., Ripple insiders or early investors) sell significant amounts of XRP to retail investors during price surges, as seen with Chris Larsen’s transfer of $140 million worth of XRP to exchanges in March 2025. Such moves can create downward pressure, as they signal potential profit-taking rather than long-term commitment.

This perception could lead to increased scrutiny from regulators and investors, especially as XRP’s market cap ($179.12 billion) remains substantial, making it a focal point for debates about insider enrichment. ZachXBT’s critique questions XRP’s real-world utility, suggesting it functions more as a speculative asset than a transformative financial tool.

This could hinder Ripple’s efforts to promote XRP for cross-border payments, especially if competing stablecoins or central bank digital currencies (CBDCs) gain traction, reducing XRP’s relevance. Despite Ripple’s partnerships with financial institutions, the ability to use Ripple’s technology without XRP (e.g., through private tokens or stablecoins) could marginalize the token.

Allegations of a personal grudge (e.g., claims that ZachXBT’s stance stems from a rejected Ripple job offer) further complicate the narrative, potentially undermining his credibility but also fueling controversy that keeps XRP in the spotlight. The “exit liquidity” critique aligns with ongoing concerns about XRP’s centralization and Ripple’s control over nearly half the total supply (100 billion XRP).

This could invite further regulatory scrutiny, especially after Ripple’s legal victories against the SEC, as regulators may question whether XRP’s structure benefits insiders disproportionately. If the perception of XRP as a vehicle for insider profit-taking grows, it could complicate efforts to secure approvals for products like an XRP ETF, despite recent optimism fueled by $1 billion in CME XRP futures open iinterest.

Why ZachXBT Sees XRP as Exit Liquidity

Ripple’s control over a significant portion of XRP’s supply (approximately 50%) is a key point of criticism. ZachXBT argues that this concentration enables insiders, such as Ripple co-founder Chris Larsen, to sell large volumes during price rallies, using retail investor demand as liquidity to exit positions.

For example, Larsen’s movement of 50 million XRP ($175 million) to exchanges in July 2025, followed by a price drop from $3.60 to below $3.10, supports this view. Historical data, such as a 2023 Journal of Blockchain Research study, indicates that 15% of top cryptocurrencies exhibit distribution patterns favoring insiders, which ZachXBT likely sees as applicable to XRP.

ZachXBT contends that XRP provides “nothing of value to the industry” beyond serving as a speculative asset for insiders to offload. He points to the absence of major stablecoin issuers (e.g., Circle, Tether) on the XRP Ledger until Circle’s USDC launch in June 2025 as evidence of limited ecosystem legitimacy.

ZachXBT likens XRP to an MLM scheme, arguing that it relies on hype and community promotion to attract new retail investors who buy in at inflated prices, benefiting early holders. He describes XRP’s community as “cult-like,” overly focused on price appreciation rather than technological innovation, which aligns with his broader disdain for projects like Cardano, Pulsechain, and Hedera.

This view is reinforced by his observation that Ripple does not adequately fund public goods or community-driven security tools, leaving investors vulnerable to scams (e.g., a $33,000 loss in a fake airdrop), which he sees as indicative of a lack of genuine ecosystem development.

ZachXBT’s refusal to assist XRP holders with scam investigations stems from his frustration with their repeated requests for help, particularly after incidents like the $33,000 airdrop scam. He believes the community lacks financial literacy and contributes little beyond speculative trading, which he deems unworthy of his time compared to larger theft cases ($100,000+).

Supporters, like Crypto Eri and Ripple CTO David Schwartz, argue that XRP’s role in cross-border payments and its integration into RippleNet’s On-Demand Liquidity (ODL) provide tangible value. Partnerships with financial institutions and the launch of USDC on the XRP Ledger counter ZachXBT’s claim of limited utility.

Despite criticisms, XRP’s 420% annual gain and $179.12 billion market cap suggest strong market interest, potentially driven by whale accumulation (e.g., $750 million in whale purchases since mid-August). This contrasts with ZachXBT’s narrative of a purely speculative asset.

The XRP community’s swift backlash, emphasizing Ripple’s legal victories and banking partnerships, indicates a robust defense against exit liquidity claims, which could sustain investor loyalty despite negative sentiment. ZachXBT’s stance is driven by observed insider token movements, perceived lack of utility, MLM-like community dynamics, and frustration with scam-related pleas.

However, XRP’s price resilience, institutional partnerships, and growing ecosystem suggest that the token retains significant support. Investors should monitor whale activity, regulatory developments, and Ripple’s ability to demonstrate XRP’s utility to counter this narrative.

French President Emmanuel Macron has urged his ministers to weigh retaliatory measures targeting the U.S. digital sector after President Donald Trump threatened new tariffs on countries with digital regulations and taxes affecting American technology giants.

At a Cabinet meeting on Wednesday, Macron said Europe “should not exclude taking a look at the digital sector” in its response, according to a senior French official who spoke to Politico on anonymity due to the sensitivity of the discussions. Macron cited the EU’s negative trade balance in services with the U.S., while noting that Washington has pressed to reduce Europe’s trade surplus in goods, particularly automobiles, pharmaceuticals, and food.

A source close to Macron confirmed that exploring retaliation against U.S. digital players aligns with his current stance. The French president is expected to raise the matter with German Chancellor Friedrich Merz during bilateral talks this week at Fort Brégançon and Toulon.

Trump, who has long criticized Europe’s regulatory regime, threatened Monday to impose substantial tariffs and export restrictions on countries that maintain digital taxes or rules he says “discriminate” against U.S. technology companies such as Google, Meta, Amazon, and Apple.

“Digital taxes, legislation, rules or regulations are all designed to harm, or discriminate against, American technology,” Trump wrote on Truth Social. He argued that while Europe and the UK impose levies such as the 2% digital services tax, China’s tech giants are “outrageously given a complete pass.”

He added: “Unless these discriminatory actions are removed, I, as president of the United States, will impose substantial additional tariffs on that country’s exports to the USA, and institute export restrictions on our highly protected technology and chips.”

The comments came just weeks after Washington and Brussels finalized a trade deal setting a baseline 15% tariff on EU exports to the U.S. The agreement was published in a joint statement last week, making Trump’s latest outburst a jolt for EU officials who thought a temporary truce had been reached.

Trump has repeatedly blasted Europe’s Digital Services Act (DSA) and Digital Markets Act (DMA), arguing they censor U.S. citizens and unfairly target American companies. France, Italy, and Spain have also introduced national digital services taxes, which Washington has labeled protectionist.

In the UK, the Trump administration has criticized the digital services tax introduced in 2020. Earlier this year, reports surfaced that Prime Minister Keir Starmer privately offered U.S. tech companies a reduction in the DST headline rate to ease tensions, while continuing to apply the levy to firms from other countries.

Despite Trump’s aggressive posture, many EU governments remain reluctant to enter a trade war. Brussels has so far held back from activating its Anti-Coercion Instrument — a legal “trade bazooka” that could restrict intellectual property rights or investment access for U.S. tech firms. European Commission President Ursula von der Leyen has previously said “all instruments are on the table” but has stopped short of direct retaliation, wary of jeopardizing U.S. cooperation on Ukraine.

Macron, however, has been consistently vocal about Europe’s need to assert itself. He has hinted that the EU failed to project enough strength in the last trade negotiations, saying Europe “was not feared enough” to secure better terms.

In the UK, Liberal Democrat leader Ed Davey urged the government not to “kowtow” to Trump’s “bullying” by weakening Britain’s DST.

“The prime minister must rule out giving in to Donald Trump’s bullying by watering down Britain’s digital services tax,” Davey said. “Tech tycoons like Elon Musk rake in millions off our online data and couldn’t care less about keeping kids safe online. The last thing they need is a tax break. The way to respond to Trump’s destructive trade war is to work with our allies to stand up to him.”

The standoff underscores how digital regulation, once a niche area of policy, has become a frontline issue in transatlantic trade relations.