- Angel investor Jason Calacanis calls XRP a “centralized controlled security,” claiming it contradicts Bitcoin’s principles and lacks decentralization.
- He warns that an XRP ETF approval could lead to market instability, enabling startups and funds to offload massive holdings on retail investors.
- Despite concerns, XRP proponents maintain the network is decentralized, while Ripple holds significant control over its circulating supply.
American entrepreneur and prominent angel investor Jason Calacanis has criticized Ripple-affiliated XRP, calling it a “centralized controlled security.” He argues that XRP starkly contrasts Bitcoin, which operates on a decentralized framework. His remarks add to the ongoing debate about XRP’s level of decentralization.
According to Calacanis, approving an XRP exchange-traded fund (ETF) could destabilize financial markets. He believes such a move would undermine securities regulations, allowing a surge of new tokens, funds, and projects to offload significant holdings onto retail investors. He describes a scenario where startups and investors sell off 50% of their assets, flooding the market while gradually offloading the rest.
XRP’s Centralization Debate Continues
The XRP Ledger has faced persistent scrutiny over its governance structure. Critics argue that its reliance on unique node lists (UNLs) and trusted validators makes it centralized. Ripple CEO Brad Garlinghouse recently disclosed that the company holds a substantial portion of XRP, reinforcing these concerns. In contrast, supporters insist that XRP operates on a neutral, decentralized network, drawing comparisons to commodities like oil and diamonds.
The potential launch of an XRP ETF generates ongoing investigation despite continuous criticism. The XRP ETF approval has a 78% chance of occurring during 2025 according to information from Polymarket. XRP’s regulatory standing would experience a major evolution through this move which would affect its market standing. The limited scope for such financial products according to Calacanis should protect only investors who fully understand their high-risk nature.
Recent Concerns Over XRP Ledger Stability
The XRP Ledger encountered a brief block production stoppage on its network during this past month which heightened doubts about its operational security. The XRP Ledger resumed operation after the interruption which revived the assessment about the dependability of XRP’s framework.
Experts in the market analyze whether XRP can operate as an autonomous digital asset in the face of possible heightened regulatory oversight because of upcoming ETF discussions.
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