XRP ETF Approval Sparks Controversy: Calacanis Criticizes Centralization and Market Risks

Legendary angel investor Jason Calacanis has criticized Ripple-affiliated XRP, labeling it a "centralized controlled security." Known for early investments in Uber and Robinhood, Calacanis argued that XRP is the opposite of Bitcoin due to its centralization. He warned that potential approval of spot XRP ETFs could undermine U.S. securities laws, leading to market chaos as numerous startups and funds offload tokens onto retail investors. Calacanis emphasized that XRP should be limited to sophisticated investors aware of its risks. Polymarket data indicates a 78% chance of XRP ETF approval in 2025.

Centralization concerns persist around the XRP Ledger, processed by 187 trusted validators. Critics highlight Ripple’s control, with CEO Brad Garlinghouse revealing the company holds $100 billion in XRP. Despite these concerns, XRP supporters argue the network remains decentralized, comparing it to commodities like oil and diamonds. Recent disruptions, including a temporary halt in XRPL block production, have fueled further debate.

In related market news, Bitcoin is expected to have a "watershed year" in 2025, with Bitwise CEO Hunter Horsley predicting increased ETF inflows, corporate adoption, and regulatory clarity. Bitcoin currently hovers near $97,000, facing resistance at $98,800 and support at $93,800. A decisive break above the 50-day EMA could signal bullish momentum.

Meanwhile, Shiba Inu (SHIB) struggles after failing to break the 26-day EMA, risking further declines. XRP, trading around $2.75, shows bullish signs after surpassing the 50 EMA. Analysts suggest a successful breakout above $3 could push XRP to $3.50-$3.70, though $2.50 remains critical support.

Calacanis’ critique adds to ongoing debates about XRP’s legitimacy, centralization, and potential ETF impact, intensifying scrutiny within the crypto community.