In a now-deleted post on X, ZachXBT said he no longer intends to help XRP holders, despite previously assisting in uncovering a Ledger exploit. He argued that the community provides little value to the wider crypto ecosystem, dismissing holders as “exit liquidity” for insiders.

The phrase refers to a dynamic where early investors or founders offload their holdings to newer entrants, often at inflated prices.

More Than Just XRP in the Crosshairs

The criticism wasn’t limited to Ripple. ZachXBT also lumped Cardano, Pulsechain, and Hedera into the same category, labeling them “MLM chains” — projects he believes operate more like marketing schemes than true innovation hubs. He claimed these ecosystems reward early insiders while leaving later investors with little upside.

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Spotlight on Insider Transactions

Part of the controversy stems from repeated scrutiny of large transfers linked to Ripple co-founder Chris Larsen. Just last month, wallets tied to Larsen moved 50 million XRP, worth roughly $175 million, with most sent to exchanges. The transfers coincided with XRP spiking to $3.60 before retracing below $3.10.

Earlier in the year, ZachXBT flagged another $109 million moved to exchanges from a founder-linked wallet, amplifying concerns about insider selling.

XRP Holds Its Ground

Despite these criticisms, XRP continues to show resilience. The settlement of its long-running SEC lawsuit has cleared a major overhang, while speculation around spot ETFs and new products like an XRP credit card have fueled optimism. For now, the community remains divided between critics who see insider cash-outs and investors betting on long-term growth.

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