Edoardo Farina, CEO of Alpha Lions Academy and a prominent voice in the XRP community, has issued a stark warning to XRP holders: move your assets off exchanges and into cold wallets. In a recent post on X (formerly Twitter), Farina expressed deep concern over the growing risk of centralized exchange failures amid potential market shocks — particularly one triggered by a collapse of Tether (USDT).
Fears of Tether Collapse Prompt Caution
Farina’s warning hinges on a worst-case scenario: the collapse of USDT, the world’s largest stablecoin. He argues that if Tether were to fail, the resulting domino effect could shake the entire cryptocurrency market, severely impacting Bitcoin (BTC) and other digital assets. In such a scenario, centralized exchanges might freeze withdrawals to maintain liquidity, potentially trapping investors’ funds at a time of maximum volatility.
Not financial advice, but withdraw your $XRP to a cold wallet. When Tether collapses and the market crashes, tearing BTC apart, exchanges may freeze withdrawals.
— EDO FARINA 🅧 XRP (@edward_farina) April 27, 2025
Banks and Governments already secured their XRP locked in escrow. 🔐
“Not financial advice, but withdraw your $XRP to a cold wallet,” Farina urged. His comments reflect a growing sentiment in the crypto community: trust in centralized exchanges is wearing thin, particularly during periods of heightened uncertainty.
Also Read: XRP Price Alert: Watch These Key Levels as Analyst Predicts Potential $1.25 Drop
Cold Storage Gains Favor Among XRP Holders
Farina emphasized that while banks and governments have already locked away their XRP holdings in escrow, retail investors remain dangerously exposed. “If you don’t have your keys, that crypto is not yours,” he said, reiterating the long-standing mantra within the decentralized finance (DeFi) movement.
The call for cold wallet usage is not without precedent. In late 2024, multiple crypto investors reported being locked out of their centralized exchange accounts, including high-profile complaints involving Coinbase. Despite reassurances from company executives, some users were unable to retrieve their assets, highlighting the risks of custodial storage.
With market anxiety on the rise, especially around stablecoins and regulatory clampdowns, Farina’s warning serves as a timely reminder for XRP holders. Those with significant holdings stored on exchanges may want to reconsider their security strategy before it’s too late.
Storing XRP in cold wallets — offline and outside the reach of third parties — could offer much-needed protection in the event of systemic disruption. As the crypto world braces for possible upheaval, decentralizing custody might be the safest play of all.
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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.
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