XRP Drops 2.28% Amid Scam Concerns, Institutional Interest Grows

XRP's latest price was $2.20, down 2.276% in the last 24 hours. Institutional interest in the XRP Ledger (XRPL) continues to grow, as does the number of scams exploiting the ecosystem. On June 4, Panos Mekras, co-founder of Anodos Finance, a leading DeFi platform built on XRPL, raised concerns over the proliferation of fraudulent projects piggybacking on the blockchain network’s growing visibility. In the X post, Mekras warned the community about the influx of low-effort projects aiming to deceive retail participants. He emphasized that many of these projects launch tokens and host presales without any functional product or viable roadmap. Mekras pointed out that these XRPL-based ventures offer little more than flashy websites, vague promises, and aggressive marketing tactics. He added that some of these projects even present roadmaps that delay delivery of simple products for over a year or list centralized exchange (CEX) listings and influencer campaigns as key milestones. Mekras said, “Sceptical of any project launching a token and doing presales, especially if they don’t have a working product or anything to prove.”

Ripple CTO David Schwartz also addressed the issue, affirming that open ecosystems are vulnerable to bad actors due to the ease of launching low-effort scams. He stated, “Mathematically, this almost has to be true of almost any open ecosystem. It’s just so much easier to create a scam than something real.” However, Mekras pointed out that XRPL currently lags behind other rivals in quality development. For context, he noted that rival platforms like Avalanche host dozens of high-quality dApps and hold billions in total value locked (TVL), while XRPL is struggling with a lack of solid, usable projects. He said, “We lack quality products and builders in this ecosystem, so we need to change this.” Despite these risks, Schwartz outlined a long-term vision for XRPL as a foundational layer for global finance. He stated, “You could consider the XRPL together with other things Ripple has built to be a financial system. I hope over the next few years it can provide a significant fraction of the financial services that people need every day from payments to investments to loans.” He explained that XRP will be central to this ecosystem for payments, liquidity, trading, and settlement. According to Schwartz, “XRP has a privileged place on XRPL. It’s the only asset that any account can receive. It’s the only asset without a counterparty. Pathfinding checks for XRP liquidity first. Autobridging makes offers to and from XRP more likely to be taken. It’s the only asset you can pay transaction fees with.”

XRP is regaining momentum after weeks of muted performance, climbing for five consecutive sessions to reach $2.25 on 4 June 2025. This price surge is attracting renewed attention to the token, which is currently trading in a tight technical range, with analysts eyeing $2.50 as the key breakout point. Market participants are closely monitoring several upcoming events, most notably the SEC’s decision on Franklin Templeton’s proposed spot XRP ETF, expected by 17 June. Speculation surrounding the ETF, Ripple’s legal clarity following its court settlement, and upcoming innovations in the XRP Ledger (XRPL) are combining to create bullish momentum. With whale accumulation rising and funding rates positive, traders are now positioning for a potential upside breakout. As of Wednesday, XRP is trading between $2.19 and $2.26, with $2.27 as the immediate resistance zone. The price action is now wedged between the 200-day exponential moving average (EMA) acting as support, and the 50-day EMA capping gains. A short-term triangle pattern has been forming since February, with XRP bouncing from the lower edge each time it tests support. Market watchers suggest that a sustained push beyond $2.50 would invalidate the pattern and trigger a significant upward movement.