Blockchain analyst ZachXBT has noted that even after legal victories, Ripple's reputation within the crypto community remains under threat. Criticism has resurfaced amid discussions regarding the distribution and positioning of XRP.
XRP Concentration and Market Pressure
ZachXBT claimed that XRP is concentrated in the hands of insiders and early investors, leading to persistent selling pressure. This, he asserted, prevents the token from achieving a natural market valuation and continues to frustrate retail holders.
Loss of Advantage and Technical Concerns
According to ZachXBT, Ripple has lost its early dominance in the cross-border payments sector. While competitors advance their technologies, Ripple has focused on lengthy legal battles, leaving gaps in innovation and market execution. Technical weaknesses such as vulnerabilities related to partial payment exploits raise concerns over network security and reliability.
Regulatory Gains and Persistent Distrust
Ripple's settlement with the SEC has improved its regulatory outlook, boosting the chances of an XRP ETF approval to nearly 90%. However, retail sentiment remains divided, as the $200 million acquisition of the Canadian payments platform Rail raises concerns among critics regarding deep-rooted tokenomics and governance issues.
The gap between regulatory progress and ongoing user skepticism underscores that insider control, technical flaws, and transparency challenges continue to weigh on Ripple's broader acceptance.
