Blockchain analyst Zachxbt has revealed why most cryptocurrency users and Ripple are unpopular despite recent legal victory and market turbulence. Zachxbt has given some reasons why users are suspecting Ripple and XRP tokens in response to the debate sparked in Ansem's tweet and Chainlink and tweeting about Ripple.
The main concern is the distribution of XRP, which Zachxbt points out is “heavyly bundled by insiders.” Token bundles with leading corporate leaders and early adopters create continuous sales pressure and do not allow prices to find a natural level.
Partnership claims and technical shortcomings drive criticism
Zachxbt claims to be falsely and falsely claiming advertised adoption without providing actual usefulness. The use claims and banking collaborations for these exaggerated payment corridors have created mistrust of the community over time.
Analysts also mentioned Ripple's “lost” First-Mover advantage. That means the company lost its firstmober advantage with cross-border payments. The competition is catching up to the lost ground, but Ripple has been busy fighting legitimate battles rather than focusing on technological advancements and implementation.
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Other criticisms include “bad mechanisms like partial payment exploits” that undermine network security and user trust. Technical vulnerabilities and network design flaws create operational concerns between developers and institutional users.
Recent developments can't address core issues
Despite the conclusive outcome of the Ripple-SEC court battle, user sentiment remains mixed due to entrenched structural issues. Ripple's $200 million acquisition of Toronto-based Stablecoin Payments Platform Rail aims to make RLUSD an enterprise payments candidate. However, critics are doubtful as to whether this acquisition strategy fixes talk nemics and governance issues.
The outlook for approval for the XRP ETF will increase to nearly 90% as the SEC settlement is in effect, and will be applied to asset managers such as Grayscale, Franklin Templeton, 21 Shares and Proshares. Institutional demand opposes retail community skepticism about Ripple's long-term value proposition.
The gap between regulatory advances and ongoing user criticism implies a problem with Ripple's system. ZachxBT's interpretation suggests that there is more to be more than just a legitimate victory to overcome the problems inherent in token distribution and its usefulness.
As researchers show, the lack of a suitable analytical infrastructure hinders transparency into the actual use of XRP in payments and speculative transactions. This transparency hinders Ripple's objective assessment of the success of its claimed payment adoption.
Related: Analysts predict $7.75 XRP when Bitcoin reaches $145,000 in 2025
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