Rajat Soni, a seasoned financial professional with a decade of industry experience, has criticized XRP, labeling it a scam and unfit for adoption by banks . In a recent statement shared on social media , Soni referred to the cryptocurrency as a “scam” , he believes that Bitcoin, rather than XRP, is positioned to lead the future of digital finance.
Concerns Over Centralization
His primary objection to the asset lies in what he views as its centralized structure. He pointed out that Ripple holds a significant portion of the token’s supply, reportedly around 50%. According to him, this concentration level makes the token susceptible to price manipulation, disqualifying it as a reliable tool for financial institutions.
In his critique, Soni claimed that Ripple’s control over its native token extends to its code, alleging that the company could theoretically modify the network or issue additional tokens. While XRP’s proponents have challenged this assertion, Soni maintained that such control undermines the decentralization required for widespread adoption in the banking sector.
Soni explained that banks traditionally prioritize maintaining control and minimizing risks. As a result, they are unlikely to embrace a system that leaves them vulnerable to third-party influence, such as Ripple.
Regulatory Challenges and Market Performance
He further argued that XRP’s potential growth is hindered by ongoing regulatory scrutiny, particularly in the United States. He cited the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple , initiated in late 2020, as a significant factor contributing to the token’s price volatility. He noted that the token has struggled to reach a new all-time high for over seven years, attributing this stagnation partly to Ripple’s periodic sales of the token, which he believes dilutes its value.
In his view, the reliance on speculative hopes of future bank adoption has left the asset without a stable foundation in the cryptocurrency market.
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Bitcoin as the Standard-Bearer
In contrast, Soni praised Bitcoin for its decentralized framework and widespread acceptance. Highlighting its open-source nature, he argued that Bitcoin’s system prevents any single entity from exerting undue influence. According to him, the distribution of Bitcoin ownership is far less concentrated, with the largest holders collectively owning a small fraction of the total supply.
He also pointed to Bitcoin’s resilience in the face of regulatory challenges. He noted that its use continues to grow in regions with limited access to traditional banking systems, underscoring its global appeal. Unlike XRP, he suggested that Bitcoin’s utility and value would not be severely impacted by regulatory action in a single country like the United States.
Skepticism from Supporters
While Soni’s criticism is not new, his remarks have been met with diminishing resistance from the cryptocurrency community. Many supporters have chosen to disregard his comments, viewing him as a staunch advocate for Bitcoin rather than an objective observer.
Despite this, his commentary continues to inspire discussions about the viability of XRP and its position within the cryptocurrency landscape. For Soni, the conclusion is clear: Bitcoin’s decentralization and utility provide it with a significant edge, while XRP’s perceived vulnerabilities make it an unlikely candidate for widespread adoption by financial institutions.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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