The operational model of Ripple, Cardano, and Hedera resembles financial pyramids, according to on-chain investigator ZachXBT.
I discriminate against MLM chains
— ZachXBT (@zachxbt) August 28, 2025
“Currently, I do not assist the XRP community and will mock anyone who messages me with such requests,” he wrote, adding that he does not support MLM chains.
In a now-deleted post that sparked discussion, ZachXBT provided data on the movements of funds by Ripple co-founder Chris Larsen. Since July 17, an address associated with him transferred 50 million XRP (~$175 million) to four wallets. About $140 million was sent to exchanges.
Some link the asset’s correction to Larsen’s actions. After reaching an all-time high of $3.65 in mid-July, the price of XRP retreated by more than 20%. At the time of writing, the altcoin is trading at $2.8.
The on-chain investigator stated that Ripple holders “bring no value to the industry other than providing exit liquidity for insiders.” He claimed the same applies to Cardano, Pulsechain, and Hedera.
In a separate post, ZachXBT advised victims of scams on the XRP Ledger to file reports with the IC3 and track stolen funds through exchanges. He emphasized that Ripple is unable to assist its community, calling its fund “stingy.”
“Unlike other blockchains, the Ripple Foundation no longer funds public goods and does not support the community,” the expert stressed.
Community Reaction
Users had mixed reactions to ZachXBT’s statements. Some were surprised by his criticism.
I like zach and im a little taken back at the fact that i would have thought even he would understand it takes capital to move mountains in this sphere… adoption comes with a price and ngl, from what im seeing, $XRP is about to be globally mass adopted by gov and financial…
— Jive_Turkey17 (@Jive_Tukey) August 29, 2025
“I like Zach, but I thought he would understand that it takes capital to move mountains in this industry. Adoption requires costs, and honestly, from what I’m seeing, XRP is about to be globally mass adopted by governments and financial sectors worldwide. That scale is the ‘free’ value,” wrote community member Jive_Turkey17.
A user under the pseudonym cryptopainter drew a parallel with Vitalik Buterin:
“How is this different from when Vitalik sells Ethereum, or [Jeff] Bezos sells Amazon shares? Founders deserve rewards.”
However, many supported ZachXBT, calling Ripple an “old story” without real value that enriched itself at the expense of investors.
He’s correct. 100%
Ripple Labs regularly dumps XRP on its holders that it gifted itself in an early *missing* portion of the blockchain ledger. That’s not a fair distribution.
It means founders of Ripple Labs get wealthy off the back of the community. 👇https://t.co/8SgTJfg5ta
— Colin Talks Crypto 🪙 (@ColinTCrypto) August 28, 2025
“He’s correct. 100%. Ripple Labs regularly dumps XRP — tokens the company received early in the blockchain’s launch. This is not fair distribution,” noted crypto enthusiast Colin Talks Crypto.
Earlier in August, Ripple’s CTO David Schwartz responded to criticism regarding the decentralization of the XRP Ledger.