The cryptocurrency world is no stranger to heated debates, but Rajat Soni’s recent X thread claiming XRP as a scam went beyond healthy discourse and pushed a lot of misinformation.
One of Soni’s central arguments hinges on XRP’s perceived lack of decentralization. He claims Ripple Labs holds too much control and could manipulate the XRP supply at will.
XRP is a scam.
Banks will never use XRP.
They will use some form of USD or #Bitcoin
Let me explain:
— Rajat Soni, CFA (@rajatsonifnance) December 18, 2023
Read Also: XRP’s Victory Takes Ripple to the Flight of Disrupting Banking System
While Ripple Labs did initially create XRP, they distributed the vast majority through independent exchanges, relinquishing their control. The XRP Ledger itself operates independently, with validators across the globe ensuring its integrity.
XRP’s decentralization has been a point of contention for many Bitcoin maximalists like Soni, and Ripple’s Chief Technology Officer (CTO) David Schwartz recently weighed in on it.
Furthermore, Soni’s claim that “banks will never use XRP” falls flat when considering Ripple’s active partnerships with financial institutions like SBI Remit. These collaborations focus on utilizing XRP’s efficient, cost-effective cross-border payment capabilities. Several central banks are also exploring XRP as a potential bridge for their digital currencies.
Soni’s misinformed assertion about Ripple Labs’ ability to change XRP’s code at will also misses the mark. The open-source nature of the XRP Ledger allows any developer to propose amendments. However, any changes require consensus from the global network of validators, effectively safeguarding against centralized manipulation.
Soni also claims that XRP would plummet to zero if banned in the US, which demonstrates a fundamental misunderstanding of the global nature of the crypto market. XRP’s utility extends far beyond the US, with strong adoption in regions like Asia and the Middle East. A hypothetical ban in one country would not cripple the entire ecosystem.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Ripple CTO Speaks On Why XRP Remains Excluded from Ripple Liquidity Hub
Backlash from the Community
His assertions were swiftly met with strong rebuttals from the XRP community, exposing a series of inaccuracies and highlighting the dangers of uncritically accepting Bitcoin maximalist viewpoints.
Panos Mekras, a renowned crypto author, pointed out that Soni’s accolades and years of experience mean nothing if he can’t do basic research. Mekras shared a link to the XRP Ledger website and an old thread he wrote about XRP, asking Soni to educate himself.
Soni isn’t the only one with an axe to grind against XRP, as Charles Hoskinson, the creator of Cardano (ADA) recently reiterated some harsh comments about XRP and its army. The backlash against Soni’s thread reveals the importance of critical thinking and fact-checking within the crypto space. Bitcoin maximalism can often lead to biased perspectives and misinformation.
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