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Atomic Wallet’s critique of XRP on X (formerly Twitter) ignites community backlash, linking the wallet to past hacks.
Atomic Wallet, a non-custodial crypto wallet, recently stirred up the crypto community by questioning the utility of XRP on X, asking why nobody uses it.
Any idea why nobody uses XRP?
— Atomic – Crypto Wallet (@AtomicWallet) July 6, 2024
The remark has incited a wide array of responses from the community, particularly among those who are invested in XRP. Amid this criticism, XRP is trading at $0.4351, posting an 87.25% decrease from its all-time high of $3.40.
Community Reactions and Accusations
The community’s reactions to Atomic Wallet’s comments have been varied and intense. Several individuals have accused Atomic Wallet of fraud, linking it to the infamous hack that resulted in the loss of $35 million in various cryptocurrencies, including Bitcoin, Ethereum, and XRP.
Criticisms also targeted the wallet’s policy of requiring a 10 XRP reserve to activate a wallet, which has been described as a deterrent for users. This commenter said,
“Well when you steal 10XRP reserve when you create a wallet to activate it, it’s already a no go.”
Despite the negative backlash, numerous community members have defended XRP, citing its frequent use for international transactions. Some highlighted XRP as their primary method for transferring funds, emphasizing its practicality and efficiency.
Supporters believe that while XRP may not be widely used yet, its potential for institutional adoption could significantly increase its behind-the-scenes utility in the future.
Historical Criticisms and Changing Perceptions
Recall that XRP has faced substantial criticism in the past. Former Goldman Sachs analyst Murad Mahmudov previously labeled XRP and Cardano (ADA) as “cult meme coins,” suggesting their value is heavily reliant on community acceptance rather than intrinsic worth.
This is the cycle when people are finally realizing that XRP and ADA were nothing other than Cult Memecoins all along
— Murad (@MustStopMurad) July 4, 2024
In September 2023, Bitcoin maximalist Max Keiser reignited debates by claiming XRP is centralized, referencing a 1991 patent that listed Ripple’s CTO, David Schwartz, as an inventor.
However, as time passes, perceptions about XRP have evolved. Investor Virtual Bacon, who once criticized XRP for its centralization and poor price performance, later expressed belief in its potential for the next bull run.
Ongoing Legal Battle Influences XRP Price
This criticism of XRP notably comes at a time when the ongoing lawsuit between the SEC and Ripple continues to be a significant factor influencing XRP’s price, contributing to its volatility and underperformance. Filed in December 2020, the lawsuit alleges Ripple violated securities laws. Since then, XRP has struggled to surpass its January 2018 high.
Speculations suggest XRP’s adverse price action may persist until the lawsuit concludes favorably for Ripple. In July 2023, XRP briefly spiked to $0.93 following a partial court victory. This legal battle remains a critical element in XRP’s market performance, with eyes on the imminent final verdict.