XRP in spotlight, but criticism grows

The impressive rise of XRP continues to fascinate the community. Since early November, the Ripple token has risen more than 400 percent, peaking at $2.80. While this performance is impressive, criticism is growing as the XRP price continues to explode.

Justin Bons, founder of the crypto fund Cyber Capital, expressed his concerns via an X-message:
"Ripple, contrary to what the leadership claims, is centralized and operates with permissions." He accuses XRP of misleading investors with false claims about decentralization.

According to Bons, trust in the XRP Ledger, based on so-called Unique Node Lists (UNLs), is more like a Proof of Authority (PoA).-system than on the truly independent mechanisms such as Proof-of-Work (PoW) or Proof of Stake (PoS). He states: "The foundation has total control of the network!"

He also criticizes the initial distribution of XRP tokens, claiming that, due to a pre-mine of 99.8 percent, it was unfair. As a solution, he suggests that Ripple should implement a Proof-of-Stake mechanism to improve decentralization.

Warnings and risks

In addition to Justin Bons, financial analyst warns Rajat Soni for the rapid price appreciation of XRP. In an X-message, he calls it an "unnatural movement" and suggests that it looks like a pump-and-dump scheme. He states: "The way the XRP price is rising is not how markets normally function," he said.

According to Soni, it is worrisome that so many crypto enthusiasts are currently contacting him about XRP. He sees the hype as dangerous, especially since the current rally is already heralding many future prospects: a crypto-friendly SEC chairman, a quick conclusion of the lawsuit against Ripple, and approval of XRP-Spot ETFs in 2025.