Despite Ripple’s legal victories, which many expected would trigger a significant price surge, XRP, the company’s native cryptocurrency, continues to underperform, drawing increasing criticism and skepticism from a growing segment of the crypto community.
The crypto asset has notably struggled to regain its valuation following a widely publicized court ruling in July 2023, when Judge Analisa Torres ruled in favor of Ripple against the U.S. Securities and Exchange Commission (SEC), determining that XRP’s sales and distributions did not constitute investment contracts. And despite Ripple being fined $125 million, a smaller penalty than expected, on August 7, the market’s reaction was lackluster, with XRP experiencing a brief 17% daily gain before losing momentum again, renewing concerns within the community.
That said, various crypto investors have been reacting, with prominent analyst Max Prime recently labeling XRP as the “biggest scam in crypto.”
In a Saturday tweet that quickly gained attention, the pundit mocked the XRP community, highlighting that despite winning the lawsuit against the SEC and paying only a small fine, XRP’s price remained stagnant.
“XRP is literally the biggest scam in crypto. They win the lawsuit against the sec (paid a very small fine) and XRP doesn’t move. These XRP clowns have been saying it’s to the moon after the lawsuit and get nothing,” he wrote.
Elsewhere, analyst Rob Cunningham expressed doubts about the long-term value of XRP and challenged the community to explain the hype. He suggested that if the price isn’t moving, the coin might lack any real value.
“Seriously, if the XRP price isn’t moving, there can’t be any value, right?” he wrote.
Ripple’s regular release of XRP from its escrow account has also sparked significant criticism. While Ripple contends that these releases are meant to promote price stability and fund company operations, including legal expenses and employee salaries, many in the community argue that they lead to increased volatility and stagnation. Critics claim that Ripple often sells substantial portions of XRP, disadvantaging retail investors who end up bearing the impact of the coin’s poor performance.
That said, despite the growing criticism, staunch supporters still believe in XRP’s long-term potential. Analyst Doctor Profit recently argued that the current seven-year consolidation phase is merely a precursor to a significant breakout, particularly if Ripple can capitalize on its numerous partnerships with financial institutions worldwide.
The pundit highlighted a key resistance level at $0.72, noting that breaking through could signal a significant bullish trend, with potential targets above $1 by early 2025. Doctor Profit also pointed out that if XRP mirrors its 2017 performance, the price could reach as high as $16.
At press time, XRP was trading at $0.59, reflecting a 0.48% growth over the past 24 hours.
