The crypto community has recently witnessed heated debate pitting Bitcoin maximalists against altcoin supporters. A veteran online personality identified as Bitcoin Dad heightened this schism by decrying XRP for five reasons, which profiled this altcoin as a scam coin amid its inclusion within the US strategic reserve.
The Bitcoin community figure elaborates on his conviction to disassociate XRP from a memecoin. The pundit has five reasons supporting his belief that XRP fits the scam coin profile. The Bitcoin Dad’s criticism emerges amid the decisive action by President Donald Trump to sign an executive order towards strategic crypto reserve and regulation clarity.
The critic emerges despite the Jan. 23 executive order failing to mention XRP. However, this hardly extinguished speculation regarding XRP inclusion, as the majority believe in its candidacy. Notably, leading crypto figure Scott Melker indicated that XRP is among the major crypto under consideration, quoting reliable sources.
The likely endorsement of XRP to the strategic reserve fuels unease among Bitcoin enthusiasts, with several openly expressing their concerns. This inclusion has recently caused extensive fear, uncertainty, and doubt (FUD) in the campaign targeting XRP.
XRP Early Ledger Concerns
Bitcoin Dad is among the latest critics who issued reasons illustrating that XRP is a scam coin and not a meme coin. He reflected on the initial phases of the XRP Ledger as engulfed by irregularities. He cites 32,000 ledger entries loss, raising concerns about the overall project’s trustworthiness and transparency.
While the loss potentially arose from technical issues or deliberate action, Bitcoin Dad considers this history to erode confidence in XRP. In the past, ripple chief technical executive David Schwartz responded to these concerns, attributing it to a server bug.
Centralization Concerns in XRP
Bitcoin Dad considers XRP to face centralization challenges and is thus a scam coin. The Bitcoin evangelist considers XRP to lack attributes of a decentralized digital asset. Ripple and the founders’ team control substantial token supply units per his account.
Bitcoin Dad indicated that insiders control over 50% of XRP tokens, primarily acquired via a pre-mining process. He considers that the dominance of insiders goes against the decentralized ideals of blockchain technology.
It is worth mentioning that Ripple holds 37.7 billion tokens, although these tokens remain locked in escrow and are inaccessible.
Regulatory Challenges
Bitcoin Dad wades into the legal woes affecting the XRP classification as unresolved. He illustrates that XRP still faces scrutiny from regulators, primarily the US Securities and Exchange Commission (SEC).
Ripple attained partial victory in 2023 as Judge Analisa Torres indicated retail XRP are not securities. However, she held that wholesale sale of XRP to institutions as securities. The former is subject to unresolved status and casts a dark shadow over this altcoin.
The online personality cites Ripple’s role within the XRPL ecosystem as an unregistered security. This stance overlooks the SEC appeal that does not challenge the summary judgment that retail XRP is not security.
Active Opposition to BTC
Bitcoin Dad alleges that Ripple is opposing BTC, citing Chis Larsen’s donation to the Greenpeace. The Ripple co-founder attributed the donation to supporting a campaign opposed to the energy-intensive mining of Bitcoin.
The Bitcoin proponent downplayed claims that BTC mining threatens the environment. He indicated that mining benefits the energy grids, thus decrying the campaigns to undermine Bitcoin.
Reliance on Political Influence
Bitcoin Dad considers Ripple leveraging political advocacy by supporting politicians opposed to adopting crypto and Bitcoin. He cited Larsen’s donation to the Democrat’s campaign for the Kamala Harris presidency.
The donation did not hinder Ripple chief Garlinghouse from mounting an energised campaign for the Trump presidency in anticipation of undoing regulatory ambiguity during the Biden administration. Bitcoin Dad illustrates that the entity only targets fostering pro-XRP policies, thereby limiting the growth of rival digital assets, primarily Bitcoin.