2023-12-1 16:43 |
Following the monthly release of 1 billion XRP tokens from escrow by Ripple, cryptocurrency investor Jeremiah took to YouTube to analyze why he considers the entire project a scam designed to constantly sell more tokens.
As Jeremiah lays out, Ripple utilizes a cycle of promoting partnerships to boost interest and prices of XRP just long enough for founders to sell their share monthly, before repeating the model.
“This is XRP’s business model – Ripple sells XRP, Ripple pays another company to become a ‘partner’, Ripple pays the new partner to tell everyone it is using Ripple. XRP goes up on the news as investors pile into the coin, and Ripple is back in the news and ripple is back to selling XRP again and the process cycle continues like that,” he argues.
The key events Jeremiah highlights are the 1 billion XRP tokens consistently released from escrow accounts controlled by Ripple – the kind of transaction @RippleXrpie reported occurs routinely.
Jeremiah suggests this predictable inflow of new tokens is the fuel that keeps the operation running month after month. As he states, “Each month XRP investors a deluded by the project releasing Ripple out of escrow. This is how XRP survives.”
By his assessment, the act of overseeing distribution of these escrowed tokens means Ripple possesses too much control over the supply to make it a truly decentralized asset.
Jeremiah further contends that beyond just selling its XRP, Ripple utilizes some funds to essentially pay partners for public relations wins rather than legitimate adoption. In his view, the partnerships exist primarily to stimulate investor FOMO.
“Ripple pays another company to become a ‘partner’, Ripple pays the new partner to tell everyone it is using Ripple,” he argues.
Read also:
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The post Crypto Expert Breaks Down Why XRP Business Model Is a Scam as Ripple Releases 1 billion Tokens Again appeared first on CaptainAltcoin.
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