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- XRP users must rely on self-custody amid declining Ripple support.
- Ripple’s centralized control and pre-mined supply remain controversial.
- Chris Larsen’s $175M XRP transfer fuels insider speculation.
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Ripple (XRP) is once again under the microscope as prominent crypto researcher ZachXBT criticized the company for reducing support to its user community. According to ZachXBT, Ripple no longer funds initiatives that provide meaningful guidance to XRP holders, leaving investors vulnerable in a market rife with scams and regulatory uncertainty.
Self-Custody: The Only Reliable Protection
ZachXBT stressed that self-custody of crypto assets is increasingly crucial, warning that most users lack the knowledge to navigate scams effectively. “Managing assets via self-custody is not simple,” he said, highlighting that Ripple’s declining support leaves XRP investors without adequate safeguards. The crypto sleuth advised victims of XRP-related fraud to file IC3 reports and monitor stolen funds through exchanges.
Criticism of XRP’s Structure and Governance
Concerns over Ripple’s centralized control are not new. Crypto researcher Justin Bons has long criticized Ripple’s dominance over the Unique Node List (UNL), arguing that it centralizes validator influence. Critics also point to XRP’s pre-mined structure, with 99.8% of tokens allocated at launch, granting insiders disproportionate power. Analyst Rajat Soni warned that Ripple’s near-half supply ownership raises potential for price manipulation. Forbes even described the XRP Ledger as a “zombie chain,” noting its limited contribution to global payments despite low transaction fees.
Also Read: XRP ETF Approval Could Trigger Record Inflows
Insider Moves Fuel Speculation
Adding fuel to the fire, ZachXBT highlighted a $175 million XRP transfer by Ripple co-founder Chris Larsen. The sale, following a recent price peak, sparked speculation of insider dumping. Despite this, Larsen still controls roughly 2.81 billion XRP. His previous departure as CEO in 2016 and political contributions in 2024 continue to draw attention from the crypto community.
While XRP has surged more than 420% in the past year, making it one of the top cryptos in 2025, critics argue that Ripple’s reduced community support, centralized control, and insider activity pose risks. For investors, the message is clear: self-custody and vigilance remain essential in a volatile crypto landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
