ZachXBT Questions Ripple’s RLUSD Stablecoin Authenticity

Blockchain investigator ZachXBT recently expressed worries about Ripple’s new RLUSD stablecoin. According to a previously deleted post, ZachXBT claims the project lacks a genuine user base and relies heavily on paid partnerships to create the illusion of real adoption.

ZachXBT’s Express Lack of Trust for RLUSD

This criticism suggests that Ripple might be boosting RLUSD’s perceived popularity through deals with other companies, rather than encouraging natural user growth. ZachXBT claimed that the growth of RLUSD appears to be fake and not driven by the community. He compared RLUSD to Circle’s USDC, Paxos’s USDP, and Tether’s USDT, stating that he trusts those issuers more.

However, an XRP supporter responded to the claims by saying that RLUSD is used in Ripple’s payment network. 

The supporter recognized that Ripple, like many blockchain projects, pays for partnerships to boost adoption, but pointed out that this practice is common in the industry. The supporter argued that these paid partnerships do not mean the adoption is fake, especially when the product has real-world use.

Notably, ZachXBT also criticized Circle for its USDC stablecoin, stating that it was being misused by North Korean IT operatives to move illicit funds. He accused Circle of not catching and freezing suspicious transactions, despite the company often claiming to have strong compliance and monitoring systems. 

Meanwhile, as governments worldwide increase their control over stablecoins, issuers may face reputational risks. 

Ripple USD Gains Momentum With Major Exchange Listing

Despite ZachXBT’s criticism of RLUSD, the stablecoin has steadily made waves in the crypto world. With its adoption by prominent exchanges like Bitstamp and Bullish, Ripple’s President Monica Long, envisions a broader expansion. If this happens, it could mark a significant milestone in RLUSD’s journey toward global adoption.

RLUSD offers on and off-ramps, allowing users to move funds between traditional and digital currencies. Monica Long also said RLUSD would be supported by XRP, which does not rely on other parties. This makes the assets more stable and easier to use.

Ripple’s Plans for RLUSD

Ripple wants RLUSD to be used in many ways, not just for trading. The goal is to make a valuable stablecoin for lending, borrowing, payments, and other decentralized finance (DeFi) services. The company also examines how the stablecoin can work with centralized and decentralized platforms.

Recall that RLUSD is already being used as collateral in Ripple’s latest acquisition deal. The technology firm recently made the biggest crypto acquisition deal by buying Hidden Road, a global broker, for a whopping $1.25 billion. RLUSD’s role in this acquisition highlights its growing involvement in large-scale financial transactions.

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