Ripple, Cardano, and Hedera holders are just 'exit liquidity for insiders,' says analyst

Key Takeaways

• Ripple’s XRP holders, along with Cardano and Hedera investors, bring no value to the crypto industry, according to ZachXBT.
• He highlighted the system's lack of effective security and forensic tools to protect users from scams and theft.

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On-chain investigator ZachXBT said on X that people who buy and hold XRP, Ripple’s native token, along with Cardano and Hedera, add no value to the crypto industry and serve only as exit liquidity for insiders.

ZachXBT stated that he does not currently assist the XRP community with scam investigations or tracing stolen funds and would “make fun of anyone” who sends him a direct message asking for such help.

His comments came in response to a thread where community members were discussing the need for better security and forensic tools to protect against scams and thefts on the XRP Ledger (XRPL).

Vet_X0, an XRPL validator, said that XRP lacks a system to freeze stolen funds or blacklist scammer addresses quickly enough after theft occurs. He suggested creating an XRP Ledger Forensics group and that the XRP Ledger Foundation could eventually allocate resources toward the project.

Responding to the discussion, ZachXBT argued that the Ripple Foundation is “cheap” and has stopped funding public goods that support or protect its community, unlike other blockchain projects.

“Due to the amount stolen, the best option is to file an IC3 report and trace to exchanges,” said the analyst. “The Ripple foundation is cheap and no longer funds public goods that provide guidance to their community, unlike other chains. Learn more about the industry and scams before holding assets via self-custody because it’s not an easy task for most people.”

“The entity is newly formed and booting up, I’m certain they will fund public goods for the community. That’s an obvious,” said Vet_X0.

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