Famed Silicon Valley Angel Investor Slams Ripple’s XRP As ‘A Centrally Controlled Security’

Jason Calacanis, a prominent angel investor and internet entrepreneur, has slammed Ripple’s XRP, labeling it a “centrally controlled security.”

Calacanis suggested that the potential greenlighting of spot US-based XRP exchange-traded funds (ETFs) will make securities laws worthless. Notably, some asset managers recently received the initial nod from the U.S. Securities and Exchange Commission to list XRP ETFs on Wall Street.

XRP Is The Opposite Of Bitcoin: Jason Calacanis

According to a Feb. 17 X post by the angel investor behind ridesharing app Uber and crypto trading platform Robinhood, all cryptocurrency OGs he has talked to believe Ripple-promoted XRP is the opposite of Bitcoin (BTC).

“XRP is a centrally controlled security — is that even a question for anyone here?”

Jason Calacanis explained that the introduction of spot XRP exchange-traded funds (ETFs) could lead to full-scale “chaos” that would jeopardize the United States’ “stable and controlled” markets.

“There will be chaos in the markets as a million startups, funds, and grifters start dumping 50% of their coins on retail while slowly selling the 50% they own and control,” he opined. 

According to the veteran investor, XRP should only be available to sophisticated investors who understand how “dangerous” investing in such a project is.  

XRP Centralization Concerns

Ripple’s XRP Ledger has long been the subject of controversy in the cryptoverse due to its perceived centralization, with critics arguing that a handful of individuals and the XRPL Foundation wield a lot of control thus undermining the decentralized tenets championed by blockchain purists.

The XRP Ledger is undeniably more centralized with regard to the number of validators that secure its network. There are roughly 100 validators on the XRP —  dramatically lower than on Bitcoin, which is powered by more than 1 million miners.

In addition, only about 35 validators are on XRPL’s default Unique Node List (UNL), meaning less than three dozen entities are responsible for keeping the network alive and reliable.

It’s worth mentioning that according to Ripple’s most recent financial disclosures, the blockchain payments firm holds some 4,485,366,320 XRP in liquid assets. It also controls approximately 38 billion XRP currently in escrow.

Meanwhile, Ripple has enthusiastically thrown its support behind the new President Donald Trump administration, with CEO Bradley Garlinghouse advocating for a U.S. digital asset reserve that would prominently feature XRP.

At press time, XRP changed hands at $2.64.