Ripple News: Is XRP a Scam? Blockchain Expert Highlights the Points
Ripple News: Is XRP a Scam or Just Growing Pains? Ripple CTO Defends
A famous blockchain researcher, Aylo referred to XRP as the "biggest financial scam" because of its low trading volume (TV) on decentralized exchanges. This sparked a heated debate in the crypto community. In response, Ripple's CTO, David Schwartz, defended the altcoin and offered his perspective.
Aylo, a researcher from Alpha Please, recently criticized XRP in a post on X. He highlighted that the XRP Ledger had just $44k in TV on decentralized exchanges within 24 hours, even though it has a large market cap. Aylo raised the questioned of XRPs true value and its real use in the crypto space due to this low trading volume.
He also highlighted that the Total Value Locked on the XRPL stood at just $80.63 million, far less than other major blockchains like Ethereum and Solana. Aylo's criticism seemed to cast doubt on the utility of the altcoin, especially when considering its huge market cap of $140 billion, according to DefiLlama.
Ripple's CTO Responds
David Schwartz, Ripple's CTO, defended the altcoin saying, Aylo’s stats only looked at Automated Market Makers (AMMs) on the XRPL. He explained that AMMs don’t show the whole picture and are just a small part of the network’s total trading activity.
Schwartz pointed out, the $44,000 in TV doesn’t truly reflect XRP’s usefulness. He explained that the AMM feature was only added in March 2024, ten years after the blockchain’s launch, showing that XRPL's DeFi ecosystem is still very new.
Support from Other Analysts
Backing up Schwartz’s point, a dUNL validator named Vet provided different numbers. He explained, the actual 24-hour DEX TV on XRPL was much higher, around $9 million. This is a big difference from the $44,000 which Aylo reported. Vet’s numbers suggest that the true trading activity on XRPL is significantly greater than what was initially shown.
