20 December 2023
A finance expert and Bitcoin maximalist has taken a major dig at XRP as he labeled the crypto token a “scam.” The expert outlined several reasons why he holds this opinion, although he seemed misguided in some.
Why XRP Is A “Scam”
In a post shared on his X (formerly Twitter) platform, finance expert Rajat Soni mentioned XRP not being decentralized as one of the reasons he believes the crypto token is a scam. He seemed to suggest that Ripple Labs solely controlled the XRP Ledger as he noted that they developed the token.
However, this belief is false, considering that it has always been emphasized that Ripple does not control the XRP Ledger or even the XRP token. In fact, this was obvious when certain amendments were to be made to the network, and Ripple’s CTO noted that they could not be passed without the approval of the validators.
Another reason Soni mentioned was that Ripple controls a large portion of the tokens in circulation. He also went further to assert that the crypto firm could alter the token’s code and issue more XRP if it wanted. However, there is no basis for this assumption, as XRP has a maximum token supply of 100 billion. That hasn’t changed since the token was pre-mined.
The finance expert also went as far as suggesting that XRP is a scam because it has no utility outside the US. He stated that people around the world don’t care about the token and that they would use the crypto token if the US cracks down on it. It is worth mentioning that the majority of XRP transactions come from outside the US.
Possible Reason For The Attack On The Token
As a Bitcoin maximalist, Soni seemed to be using his post to put XRP down and show why Bitcoin was superior. After he had had a go at the altcoins, he went on to compare the crypto token with Bitcoin, highlighting why the flagship crypto token is superior, in his opinion. He alluded to how Bitcoin’s supply isn’t concentrated and that the network was totally decentralized with a vast pool of miners.
Furthermore, he mentioned how people are using Bitcoin to trade regularly in “other countries because they have no other way to transact.” Bitcoin’s value is so immense that Soni believes that holders won’t part ways with their tokens even if Bitcoin is banned.
Interestingly, pro-XRP YouTuber Zach Rector recently made a case for XRP against Bitcoin. He believes that the former is the future of finance and not the flagship crypto token. One thing he alluded to was the increasing transaction fees on the Bitcoin network and how that was going to affect its utility. This is unlike XRP, which has a relatively cheaper average transaction fee.