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- Nidhi Kolhapur
Nidhi Kolhapur
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Reviewed by:
Zafar Naik - Aug 29, 2025 10:07 UTC
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Bill Morgan Fires Back at XRP Critics Over Escrow and Adoption
ZachXBT accuses Ripple insiders of dumping XRP, sparking backlash from the XRP community.
Bill Morgan defends Ripple, highlighting escrow transparency, institutional use cases, and RLUSD’s $650M growth.
On-chain investigator ZachXBT has once again stirred the XRP community, accusing Ripple holders of adding little value to the industry apart from serving as “exit liquidity” for insiders. He also pointed to Ripple co-founder Chris Larsen’s token movements, alleging that millions of XRP were sent to exchanges during price rallies.
ZachXBT’s Harsh Take on Ripple
According to ZachXBT, XRP remains heavily controlled by insiders. He argued that Ripple’s paid partnerships are often misrepresented as adoption, while its early ledger history was lost. He added that flaws such as partial payment exploits and the absence of a robust analytics infrastructure continue to undermine the network.
Bill Morgan Highlights the Ripple Irony
Attorney Bill Morgan pushed back on X, pointing out the double standard in these criticisms.
“Ripple gets criticized either way: holding too much XRP makes it seem centralized, while selling XRP makes it look like it’s dumping on retail. Hold it or sold it. Damned if they do, damned if they don’t,” Morgan wrote.
He noted that critics can’t have it both ways, accusing Ripple of centralization when it keeps tokens in escrow, and of manipulation when it sells them.
XRP Escrow Release Explained
Morgan further explained Ripple’s escrow system, which releases up to 1 billion XRP per month. However, most of these tokens are often re-locked, keeping the circulating supply relatively stable.
Some users compared this process to Chainlink’s monthly buybacks, which are also predictable supply management strategies. Morgan added that Ripple not only locks tokens back but also conducts buybacks, with XRP’s circulating supply sitting just under 60% compared to LINK’s 68%.
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XRP’s Real-World Utility vs. Speculation
In response to claims that XRP’s adoption is “limited and speculative,” Morgan highlighted its institutional utility:
- Bullish borrowed XRP through a master loan agreement for liquidity and market-making.
- Gemini relied on XRP to support its IPO proceeds.
Morgan said, These are proof that XRP plays a role beyond speculation.
RLUSD Stablecoin Gaining Traction
Meanwhile, Ripple’s stablecoin ecosystem is rapidly growing. The July RLUSD attestation confirmed that its market cap has crossed $650 million.
- RLUSD was recently used for the first IPO proceeds payment on Bullish.
- Aave’s Horizon now lets users borrow RLUSD with institutional funds or US Treasuries as collateral.
- Ripple and SBI VC are preparing to launch RLUSD in Japan next year, marking a major expansion.
With such moves, XRP and its ecosystem show steady momentum into Q3 and beyond.
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FAQs
Because he believes insiders benefit the most from XRP’s price moves while retail investors absorb the downside.
He claimed millions of XRP were sent to exchanges during price spikes, fueling concerns about insider selling.
Critics like ZachXBT argue Ripple’s large holdings and escrow control make it centralized, while Ripple insists the escrow provides transparency and stability.
Yes, Morgan pointed out both follow predictable supply strategies, though Ripple also conducts buybacks directly.
Up to 1B XRP is released monthly, but most of it is re-locked, ensuring gradual supply rather than sudden dumps.
Yes 
No 
