Introduction
A sharp decline in XRP’s price to $1.15 has sparked a controversial theory within the crypto community: that the crash was deliberately engineered to benefit major financial institutions. Prominent commentator Stellar Rippler warns this volatility is a strategic move, not random market noise, and urges holders to withdraw XRP from centralized exchanges immediately amid reported withdrawal difficulties. Despite the sell-off, social media sentiment for XRP remains surprisingly optimistic compared to other major cryptocurrencies.
Key Points
- Analyst alleges XRP's price drop was engineered to let institutions like BlackRock and central banks buy escrowed XRP cheaply before NDAs lift.
- Warns of withdrawal issues on Binance and Coinbase, urging holders to move XRP to cold wallets for self-custody.
- XRP's social sentiment stays positive vs. Bitcoin and Ethereum despite crash, trading at $1.42 after hitting $1.15.
The Theory of an Engineered Crash
The recent market-wide downturn saw XRP plummet to around $1.15, a move that crypto pundit Stellar Rippler argues was not a routine dip but a calculated event. The core of his theory hinges on the unique nature of XRP as an asset. He references past statements by David Schwartz, co-creator of the XRP Ledger, describing XRP as “pre-allocated liquidity for institutional use” and notes that XRP held in Ripple’s escrow can be sold to institutions but not circulated until related non-disclosure agreements (NDAs) are disclosed.
According to this narrative, the sudden price crash serves a specific strategic purpose: to create a buying opportunity for large financial players before a potential market repricing. Stellar Rippler names entities including BlackRock, JPMorgan, Bank of America, and institutions linked to the BRICS nations, the United Arab Emirates, the United Kingdom, and European central banking structures as having allegedly purchased the rights to buy the escrowed XRP. The pundit’s claim is that these institutions are positioning themselves to accumulate XRP at lower prices, engineering volatility to facilitate this accumulation. It is crucial to note, however, that at the time of writing, there are no public filings that confirm such coordinated buying of XRP escrows by these entities.
The Urgent Call for Self-Custody
Parallel to the price manipulation theory is a stark warning about exchange reliability. Stellar Rippler emphasizes that users of major platforms like Binance and Coinbase have reportedly been facing difficulties withdrawing their cryptocurrencies. This reported friction is presented not merely as a technical glitch but as a systemic warning sign.
The analyst’s message taps directly into the foundational crypto ethos of “being your own bank.” He urges XRP holders to move their assets off centralized exchanges and into cold wallets—physical devices that store cryptocurrency offline. This call for self-custody resurfaced strongly amid the recent volatility, reflecting deep-seated concerns about counterparty risk and the security of assets held on third-party platforms, especially during periods of market stress.
Market Context and Contradictory Sentiment
The alarm was sounded against the backdrop of a broader crypto sell-off, with Bitcoin crashing below $70,000 and pulling most altcoins, including XRP, lower. Following the dip, XRP has shown resilience, rebounding to trade near $1.42 at the time of writing, easing some immediate pressure but not fully restoring confidence among all investors.
Interestingly, sentiment analysis presents a contradictory picture. Despite the price crash and alarming theories, data indicates that social media commentary surrounding XRP remains relatively more optimistic than for other large-cap assets like Bitcoin and Ethereum. This persistent positive sentiment suggests a deeply committed community that may view price dips as buying opportunities, regardless of the underlying narratives about institutional manipulation or exchange risks.
📎 Related coverage from: newsbtc.com
