Analyst: XRP, ADA, HBAR Holders Provide 'Exit Liquidity'
Analyst Claims XRP, ADA, and HBAR Holders Serve as 'Exit Liquidity'
Prominent on-chain investigator ZachXBT ignited discussion on X (formerly Twitter), asserting that holders of XRP (Ripple), Cardano (ADA), and Hedera (HBAR) provide minimal value to the cryptocurrency ecosystem. According to ZachXBT, these investors primarily function as exit liquidity for insiders.
Ripple holders provide nothing of value to the industry except exit liquidity for insiders thus are not worth supporting (Likewise with Cardano, Pulsechain, Hedera, etc)
— ZachXBT (@zachxbt) August 28, 2025
ZachXBT also stated a current lack of interest in assisting the XRP community with scam investigations or fund tracing, adding that he would not entertain requests for help.
Community Concerns Spark Analyst's Comments
The remarks followed a conversation regarding the necessity for improved security measures and forensic tools to combat scams and thefts on the XRP Ledger (XRPL).
XRPL validator Vet_X0 pointed out the limitations of XRP in freezing stolen funds or promptly blacklisting addresses involved in scams. The validator proposed the creation of an XRP Ledger Forensics group, suggesting the XRP Ledger Foundation could potentially allocate resources to this initiative.
Lack of Funding for Public Goods
ZachXBT responded by alleging that the Ripple Foundation is not sufficiently funding public goods aimed at supporting or safeguarding its community, contrasting this with the practices of other blockchain projects.
“Due to the amount stolen, the best option is to file an IC3 report and trace to exchanges,” said the analyst. “The Ripple foundation is cheap and no longer funds public goods that provide guidance to their community, unlike other chains. Learn more about the industry and scams before holding assets via self-custody because it’s not an easy task for most people.”
Vet_X0 countered that the newly formed entity is likely to fund public goods for the community. “The entity is newly formed and booting up, I’m certain they will fund public goods for the community. That’s an obvious,” said Vet_X0.