A Bitcoin community figure outlines five reasons he believes XRP is a scam coin amid discussions around its inclusion in the U.S. strategic reserve.
The crypto community remains divided as Bitcoin maximalists and altcoin supporters continue to clash. Recently, prominent Bitcoin advocate and online personality “Bitcoin Dad” intensified this commotion with a criticism of XRP. He outlined five key reasons he believes XRP is a “scam coin.”
Bitcoin Dad’s comments have emerged amid discussions about a possible U.S. strategic digital asset reserve following President Donald Trump’s executive order.
While the executive order makes no mention of XRP, speculation over the token’s inclusion have emerged, as most believe it remains a potential top pick. Further, prominent crypto figure Scott Melker recently suggested that XRP was under consideration, citing reliable sources.
However, the idea that XRP could secure an inclusion in the reserve has fueled unease among Bitcoin supporters, with some actively expressing their concerns. This has triggered an extensive FUD campaign against XRP over the past few days.
Concerns About XRP’s Early Ledger
Particularly, Bitcoin Dad is the latest to voice these criticisms, citing five reasons he believes XRP is not really a meme coin but a scam coin instead.
For the first reason, he noted that the initial stages of the XRP Ledger were marred by irregularities. He highlighted the loss of the first 32,000 ledger entries, a situation he believes raises serious questions about the project’s transparency and trustworthiness.
Whether the loss stemmed from technical issues or deliberate action, Bitcoin Dad argues this history undermines confidence in the asset. Notably, Ripple CTO David Schwartz has addressed these concerns, noting that there was a bug with the servers.
Centralization Concerns
Centralization is the second reason why Bitcoin Dad believes XRP is a scam coin. The Bitcoin maxi asserts that XRP cannot be considered a decentralized digital asset.
According to him, Ripple and its founders control a significant portion of the token’s supply. Bitcoin Dad states that over 50% of the tokens are held by insiders, primarily through a pre-mining process.
He believes that this goes against the decentralized ethos of blockchain technology. It bears mentioning that Ripple and its founders do hold a substantial amount of XRP, with the firm itself boasting 37.7 billion. However, these tokens are locked in escrow and not all accessible.
Regulatory Issues
Bitcoin Dad believes the legal classification of XRP is another contentious issue. He pointed out that XRP has faced scrutiny from regulators, including the U.S. Securities and Exchange Commission (SEC).
While Ripple recently achieved a partial victory in its legal battle with the SEC, Bitcoin Dad argues that unresolved regulatory concerns still cast a shadow over the crypto asset.
3. XRP is just a unregistered security. While they recently won a battle with the SEC, they aren't out of the woods yet.
This is not an organic crypto project or something led by a community. Ripple is a company that sells a shitcoin. They employ a CEO, PR team, etc. pic.twitter.com/PeoEJ0mitW
— Bitcoin Dad (@bitcoin_dad) January 24, 2025
He also questions its status as an unregistered security, citing Ripple’s role in the XRPL ecosystem. Nonetheless, it is important to note that the July 2023 summary judgment ruling that deemed XRP a non-security is not under contention, as the SEC’s appeal in the ongoing lawsuit does not argue against it.
Alleged Opposition to Bitcoin
Bitcoin Dad further accused Ripple of actively opposing Bitcoin. He highlighted a donation by Ripple Co-founder Chris Larsen to Greenpeace, which he says supported a campaign against Bitcoin’s energy consumption.
Accordingly, the Bitcoin proponent rejected the growing claims that Bitcoin mining harms the environment, instead arguing that mining can benefit energy grids. He believes this campaign was a deliberate attempt to undermine Bitcoin.
Political Advocacy
Lastly, Bitcoin Dad suggested that Ripple has used political influence to its advantage. He alleges that Ripple supports politicians who oppose Bitcoin and broader cryptocurrency adoption, citing Larsen’s donation to the Kamala Harris campaign last year.
It bears mentioning that despite this donation, Ripple CEO Garlinghouse was largely in support of a Trump presidency due to the regulatory challenges the firm faced under Biden. However, Bitcoin Dad claims the company only aims to foster favorable policies for XRP while limiting the growth of competing digital assets, particularly Bitcoin.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
