XRP News Today: XRP Faces Criticism Over Insider Control and Structural Tokenomics Issues

Ripple is facing renewed criticism from crypto analysts who argue that XRP's market dynamics remain skewed by insider control and structural tokenomics issues. According to blockchain analyst ZachXBT, the token is heavily concentrated among insiders and early investors, leading to persistent selling pressure and preventing it from achieving a natural market valuation [1]. This concentration, he claims, continues to frustrate retail investors who seek a more decentralized and equitable token model [1].

The issue has been amplified by recent actions from Ripple co-founder Chris Larsen, who sold 50 million XRP tokens, a move analysts interpret as a strategic reduction rather than an exit. Larsen still holds an estimated 2.5 billion XRP, a fact that has drawn scrutiny and raised concerns about the token's decentralization and market neutrality [1]. These concerns are compounded by skepticism surrounding Ripple’s past partnership announcements, which some critics argue were overstated or ineffective in practical usage [1].

In addition to distribution challenges, Ripple has struggled to maintain its early advantage in the cross-border payments sector. Analysts point out that while competitors have advanced their technology and market presence, Ripple's focus on legal battles has left gaps in innovation and execution [1]. Technical vulnerabilities, including issues related to partial payment exploits, have further eroded trust in the platform’s security and reliability, deterring potential developers and institutional investors [1].

Despite recent regulatory progress—most notably Ripple’s settlement with the SEC, which has improved the token’s legal standing and boosted the likelihood of an XRP ETF approval—these developments have not translated into broader market confidence [1]. The token remains under $3.65, a key price level where a bearish chart pattern has emerged, signaling potential instability for bullish investors [2]. Analysts have observed that XRP is struggling to break through critical resistance levels, raising questions about its ability to regain upward momentum [2].

Ripple’s recent $200 million acquisition of Canadian payments platform Rail is seen by some as a strategic move to enhance its RLUSD stablecoin offering for enterprise use. However, critics argue that this does not address deeper issues surrounding XRP’s tokenomics and governance [1]. The gap between regulatory clarity and ongoing skepticism among retail investors highlights the broader challenges facing the company as it seeks to reestablish itself in a rapidly evolving market [1].

The cryptocurrency landscape remains cautious, with macroeconomic factors such as the performance of the Canadian dollar against the U.S. dollar underscoring the interplay between traditional and digital assets during periods of uncertainty [3]. In this context, XRP’s performance is being closely watched as an indicator of both market sentiment and the token’s resilience amid shifting economic conditions [5].

Ripple’s ability to sustain its recent legal victories while addressing structural market and technical concerns will be key to its future success. Without meaningful improvements in transparency, innovation, and governance, the company may continue to struggle against rising competitors and evolving investor expectations [1].

Source:

[1] Chris Larsen, Co-Founder of Ripple, Dumps 50 Million ... (https://www.mitrade.com/au/insights/news/live-news/article-8-1026781-20250810)

[2] Ethereal USD (ETRL-USD) latest stock news and headlines (https://uk.finance.yahoo.com/quote/ETRL-USD/news/)

[3] Canadian Dollar dips as US Dollar firms ahead of key ... (https://www.fxstreet.com/news/canadian-dollar-backslides-as-greenback-bounces-ahead-of-critical-cpi-inflation-202508111650)

[5] Rebeca Moen (https://blockchain.news/Profile/Rebeca-Moen)