Bill Morgan Fires Back at XRP Critics Over Escrow and Adoption

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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