Ethereum co-founder Vitalik Buterin recently criticized $XRP, claiming that XRP will struggle to maintain its position as the third-largest by market cap and could face a steep decline in the near future. He raised several issues that cast doubt on XRP’s long-term sustainability, painting a grim picture for its future performance.
Artificial Volume and Investor Losses
Buterin argued that XRP’s recent spike in trading volume is suspiciously high and likely driven by bots or fabricated activity rather than genuine investor interest. He claims this artificial volume creates an illusion of market strength, encouraging retail investors to buy in, while institutional players take profits. “Retail investors will bear the brunt of the inevitable crash,” he warned, suggesting that these tactics undermine market integrity.
Legal Uncertainty Looms Large
Ripple’s ongoing legal battle with the SEC remains unresolved, keeping XRP in regulatory limbo. Although Ripple achieved partial legal victories, the SEC's appeal could result in prolonged litigation and potentially adverse rulings. According to Buterin, this uncertainty discourages institutional adoption and limits XRP’s potential to gain traction as a legitimate asset.
Doubts About RLUSD Stablecoin Launch
Buterin also cast doubt on rumors that XRP’s ecosystem will soon release a stablecoin named RLUSD. This development, anticipated for early December, is seen by some as a potential boost for Ripple’s ecosystem. However, Buterin dismissed these claims, suggesting the project could face delays or even fail to launch, further damaging investor confidence.
Conclusion
Vitalik Buterin’s critique highlights several vulnerabilities in XRP’s current trajectory. Between inflated volumes, unresolved legal challenges, and unfulfilled ecosystem promises, XRP faces significant risks. If these issues are not addressed, the cryptocurrency may see a sharp decline, potentially falling below critical support levels. Investors should exercise caution in light of these developments.
