Why a Researcher Called XRP the “Biggest Scam”—and How Ripple’s CTO Responded

After a rocky period of decline, XRP finally had its moment in the sun with a spectacular rally in late 2024 and early 2025. But as the saying goes, what goes up must come down. Since then, the Ripple token has been caught in a whirlwind of volatility, leaving many crypto enthusiasts scratching their heads. Some experts are now questioning whether the hype surrounding XRP is justified, given its shaky Today’s Viral Level= RoyalBlue action and lackluster trading metrics. One outspoken researcher even went as far as to label it the “biggest financial scam” due to its surprisingly low trading volume. But hold your horses—Ripple’s CTO isn’t having any of it. So, what’s really going on here? Let’s dive in.

Researcher Calls XRP the “Biggest Scam” in Crypto

In the wild world of crypto, bold claims are nothing new, but this one definitely caught the community’s attention. A researcher known as Aylo, who specializes in uncovering alpha (aka juicy crypto insights), recently took to X (formerly Twitter) to throw some serious shade at XRP. According to Aylo, the Ripple token is nothing more than an elaborate scam, and he presented what he claimed was damning evidence to back it up.

His argument? The XRP Ledger’s decentralized exchange volume was pathetically low—just $44,000—despite XRP being one of the most talked-about assets in the market. To put that into perspective, some meme coins with cartoon dog mascots see more daily action than that. Aylo even shared a screenshot from DeFiLlama to support his case, questioning how a coin with such a massive market cap could have such weak trading activity.

This hot take sent shockwaves through the crypto community, especially since XRP had recently been mentioned in discussions about the U.S. Strategic Crypto Reserve. Naturally, the controversy sparked a heated debate—was Aylo onto something, or was this just another case of crypto FUD (fear, uncertainty, and doubt) running wild?

Ripple CTO Fires Back, Debunks the Claim

Before the XRP haters could pop the champagne, Ripple’s Chief Technology Officer, David Schwartz, stepped in to set the record straight. Rather than letting the allegations snowball, Schwartz responded directly to Aylo’s post, pointing out a critical flaw in his argument.

According to Schwartz, the data Aylo referenced only accounted for Automated Market Makers (AMMs) on the XRP Ledger—a tiny fraction of overall XRP usage. In other words, Aylo was looking at a single, narrow data point and using it to paint an incomplete (and misleading) picture of XRP’s trading activity.

“I can’t find the exact page you’re looking at, but I bet that’s just looking at AMMs on XRPL, a minuscule fraction of what people use XRP for,” Schwartz commented.

But wait, there’s more! A dUNL validator known as Vet also jumped into the fray, presenting actual data to clear up the confusion. According to Vet’s stats, the real 24-hour decentralized exchange volume on the XRPL was closer to $9 million—far from the measly $44,000 Aylo had claimed.

Vet took things a step further, arguing that low DEX volume should be seen as an opportunity rather than a red flag. Since fewer participants are currently taking advantage of XRPL’s DeFi ecosystem, early adopters still have room to make a splash. In other words, rather than calling XRP a scam, savvy investors might view this as a “buy the dip” moment.

Where Does XRP Stand Today—and What’s Next?

Despite the controversy, XRP continues to hold its ground as one of the biggest names in crypto. Sure, it’s currently experiencing some turbulence, but that hasn’t stopped investors from keeping an eye on its future potential. With ongoing developments in the SEC vs. Ripple case, the possibility of a Donald Trump-backed crypto reserve, and even talks of an XRP ETF launch, there are plenty of reasons why some believe the token could still have a bright future.

As of now, XRP is trading at $2.37, with a market capitalization of a staggering $138.2 billion, making it the fourth-largest cryptocurrency behind Bitcoin, Ethereum, and Tether. Sure, its Price has taken a hit due to the broader market correction, but seasoned traders know that the crypto rollercoaster never stops for long.

So, will XRP prove the skeptics wrong and stage another rally, or is this just the beginning of a long downward spiral? Only time will tell—but one thing’s for sure: the drama surrounding this altcoin is far from over.

FAQ: The XRP Controversy, Explained

1. Why did the researcher call XRP a scam?

Aylo, a crypto researcher, claimed XRP was the “biggest scam” due to the low trading volume on its decentralized exchange. He argued that a top-tier crypto asset shouldn’t have such weak trading metrics.

2. What was wrong with his claim?

The data Aylo cited only accounted for Automated Market Makers (AMMs) on the XRPL, which represent just a small portion of XRP’s overall trading activity. Other sources reported XRPL’s actual daily volume to be closer to $9 million.

3. How did Ripple’s CTO respond?

David Schwartz, Ripple’s CTO, corrected the misinformation by explaining that AMM volume does not reflect XRP’s true usage. Other analysts backed up his claim with more accurate figures.

4. What’s next for XRP?

Despite the controversy, XRP remains a major player in the crypto market. With legal battles, potential ETF listings, and government-backed crypto initiatives on the horizon, its future remains uncertain—but certainly not boring.