Is XRP Really the “Biggest Financial Scam”? Here’s Why That Claim Misses the Mark
A cryptocurrency researcher, Aylo, recently made waves with a strong assertion, calling XRP "the biggest financial scam the world has ever seen."
This bold statement was made in a post on X, where Aylo highlighted a significant disparity between XRP’s market value and its trading activity. According to data from DeFiLlama, XRP’s 24-hour decentralized exchange (DEX) volume was a mere $44,036, while its total value locked (TVL) stood at $80.63 million.
Despite this alarming comparison, the claim that XRP is a scam quickly drew attention and sparked debate. However, experts such as Ripple’s Chief Technology Officer, David Schwartz, offered clarifications, pointing out that Aylo’s figures only accounted for automated market makers (AMMs) on the XRP ledger.
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Additionally, a validator named Vet provided an alternative figure, suggesting a much higher volume of approximately $9 million, underscoring XRP’s potential for growth.
So, is XRP truly a scam? The short answer is no. While its DEX volume may be low compared to other platforms, this doesn’t necessarily indicate fraudulent activity. XRP wasn’t built for decentralized finance (DeFi) applications like Ethereum or Binance Smart Chain.
Instead, its primary goal is to enable fast, low-cost cross-border payments and act as a bridge currency for financial institutions. Therefore, evaluating XRP’s success based solely on TVL is misleading, as it doesn’t capture the true utility of the XRP Ledger (XRPL), which focuses on speed and scalability rather than asset locking for staking or yield farming.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
