XRP, a Scam Inflating Market Cap Without Substance... $83 Billion Controversy Shaking the Korean Market

▲ XRP

Controversy has escalated as market analyst Ryker criticized XRP as the biggest scam he has seen in the cryptocurrency market. He pointed out inflation problems, stating that XRP maintains a market capitalization of approximately $83 billion despite a lack of real utility, and referenced Ripple's escrow holdings and monthly release structure.

Bitcoinist reported on May 22 (local time) that Ryker strongly criticized XRP via X (formerly Twitter). Ryker claimed that XRP “has nothing” yet holds a massive market capitalization. He asserted that the XRP price was inflated by a team with market experience and connections to large whales.

Ryker claimed that a few years ago, this team pushed XRP from $0.5 to $3, then mobilized numerous celebrities and media outlets to promote the token. He stated that this phenomenon primarily occurred in the Korean market, and many people incurred losses with XRP. He specifically noted XRP's strong presence in the Korean market, citing Upbit's massive trading volume. Ryker warned that market participants who continue to buy XRP based on celebrity endorsements could ultimately lose everything.

XRP's price movement was also presented as a basis for criticism. XRP has fallen by over 27% this year, performing worse than other altcoins like Hyperliquid and Zcash (ZEC). Ryker emphasized that investors should conduct their own research before buying cryptocurrencies.

On the other hand, signs of growth have appeared on the XRP Ledger. According to on-chain analytics platform Santiment, 4,300 new XRP wallets were created in the last 24 hours. This is the fourth largest increase this year. Santiment explained that network growth is one of the leading indicators for identifying price reversals, suggesting the possibility that XRP could rebound from its current level.

Real-World Asset (RWA) adoption was also mentioned as a pillar of XRP Ledger's growth. According to RWA.xyz data, the XRP Ledger recorded $1.3 billion in net inflows over the past 30 days, leading in net inflows during that period. The second-place Avalanche (AVAX) had net inflows of $500 million. Vet, an XRP Ledger validator, mentioned network growth in the RWA sector and stated that distribution is the next challenge.

As of the time of writing, XRP was trading at approximately $1.37 and had fallen in the last 24 hours. With Ryker's strong criticism and the XRP Ledger's on-chain growth signals emerging simultaneously, the debate surrounding XRP is expanding into the gap between price underperformance and network utility.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*