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.
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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.