Prominent crypto expert, Elite Crypto, recently declared their intention to disengage from XRP entirely, citing frustrations with its price performance and a controversial donation by Ripple’s co-founder.
In a recent post on X, Elite Crypto made it clear that they no longer view XRP as a viable investment option, underscoring two primary reasons behind this stance.
XRP Price Stagnation Likened to Stablecoin Behavior
Elite Crypto’s first issue with XRP lies in its prolonged lack of price movement, with the expert describing XRP as a “stablecoin” due to its consistently narrow trading range.
This characterization stems from XRP’s price action over the past two years, where its value has displayed minimal volatility, much to the dissatisfaction of market participants hoping for a more dynamic performance. Elite Crypto highlighted that XRP’s price stagnation significantly reduces its appeal, as it prefers cryptocurrencies with greater volatility and growth potential.
This stagnant performance contrasts with the broader cryptocurrency market, which has seen numerous projects achieving substantial price increases, particularly during the recent bull cycles.
As XRP’s trajectory remains steady, many investors question whether it will regain the momentum witnessed during earlier market cycles, creating an environment of skepticism among stakeholders like Elite Crypto.
Ripple Co-Founder’s $10 Million Donation Sparks Community Outrage
The second reason behind Elite Crypto’s departure from XRP involves a recent political donation by Ripple’s co-founder, Chris Larsen. Specifically, Larsen’s contribution of $10 million in XRP to U.S. Vice President Kamala Harris’ campaign has ignited widespread criticism within the XRP community.
The expert expressed disapproval of the donation, as they view it as misaligned with their political support for former President Donald Trump, which they shared openly in their post.
The XRP community, a considerable portion of which harbors deep reservations about the current administration, has expressed frustration over Larsen’s alignment with Harris. The Biden administration, under which Harris serves, has been notably critical of cryptocurrencies.
Although the Ripple lawsuit began under the previous administration in late 2020, the case intensified under President Joe Biden’s leadership with Gary Gensler as the SEC’s chair, resulting in extensive regulatory scrutiny on Ripple and protracted legal challenges for XRP holders.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
XRP Community Members Condemn Larsen’s Decision
Within the XRP community, Larsen’s donation has reignited concerns about Ripple’s alleged detrimental impact on XRP holders. In an immediate response to the news, community member Nietzbux criticized Larsen’s decision, claiming it shifted the longstanding narrative from “Ripple dumps XRP on holders” to “Kamala dumps XRP on holders.”
This sentiment is rooted in Ripple’s historical practice of unlocking 1 billion XRP per month from escrow , with approximately 200 million tokens sold monthly to support operations. This practice is termed a consistent “dump” of the token on the market, mounting downward pressure on the coin’s value.
Nietzbux emphasized that Larsen’s donation, which will be liquidated to fiat to support Harris’ campaign, further compounds this problem. According to Nietzbux, while investors have often raised concerns about Ripple’s sale practices, this transaction represents a new and unwelcome development.
The Aftermath and Ripple’s Public Image Challenge
The repercussions of these events are not limited to Larsen alone as they could dent Ripple’s image in the public before the public. Larsen’s donation has prompted questions over the alignment between Ripple’s corporate interests and the broader XRP community.
As Elite Crypto and other XRP holders reconsider their positions on the cryptocurrency, Ripple faces an uphill task of reassuring stakeholders of its commitment to enhancing the token’s market performance and upholding its value.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
