Institutional acknowledgment confirms the potential risks of XRP whale-driven manipulation
- SEC's Cyber Hornet XRP ETF filing highlights whale manipulation risks, a rare institutional acknowledgment of crypto market vulnerabilities. - XRP's pre-mined supply and lack of staking rewards exacerbate liquidity challenges and volatility, unlike Bitcoin or Ethereum. - Recent whale transfers, like 160 million XRP movements, have pushed prices below key support levels, signaling short-term instability. - Pending XRP ETF approvals and institutional inflows may stabilize the market, but regulatory clarity
The recent submission to the U.S. Securities and Exchange Commission (SEC) for the Cyber Hornet S&P500/XRP ETF has spotlighted the dangers associated with major
The inherent structure of XRP amplifies these vulnerabilities. In contrast to
Latest blockchain data shows a surge in whale accumulation. Wallets with balances between 10 million and 100 million XRP collectively added 880 million tokens from April to early May 2025, indicating strong long-term faith in XRP Opportunity to Invest in XRP Despite Market Manipulation and Whale Accumulation [ 4 ]. Still, large transfers to exchanges—such as a 30 million XRP
The SEC’s postponement of a decision on 21Shares’ spot XRP ETF, now expected by the end of 2025, has introduced further unpredictability. Although institutional interest in XRP has grown following regulatory developments in 2025—as shown by $1.2 billion flowing into the ProShares Ultra XRP ETF—wider adoption still depends on effectively addressing manipulation concerns XRP Price Risks Further Loss: Ripple Whales Dump Millions [ 2 ]. Some critics warn that without adequate protections, XRP’s role in international payments (for example, Ripple’s $1.3 trillion in processed transactions) could be undermined by ongoing volatility XRP Price Risks Further Loss: Ripple Whales Dump Millions [ 2 ].
Experts forecast that XRP could trade between $10 and $25 by the end of 2025, provided ETF approvals come through and whale-driven volatility diminishes XRP ETF Approval Delayed But Whale Activity Heats Up: $4 Target in Sight [ 3 ]. Data from derivatives markets and improved liquidity on major trading platforms point to the possibility of a sustained price rebound if institutional investments continue XRP ETF Approval Delayed But Whale Activity Heats Up: $4 Target in Sight [ 3 ]. Nevertheless, the future of XRP as a mainstream investment will depend on the interplay between regulatory advances, whale behavior, and broader economic trends Opportunity to Invest in XRP Despite Market Manipulation and Whale Accumulation [ 4 ].
The Cyber Hornet ETF submission marks a significant development in the evolution of the crypto market. By formally addressing the threat of whale manipulation, the filing could shape how both regulators and investors evaluate XRP’s prospects. With 16 XRP ETF applications awaiting decisions, the outcome will hinge on balancing speculative interest with practical uses—such as Ripple’s On-Demand Liquidity (ODL) platform New XRP ETF Filing Warns of Whale Manipulation Risk [ 1 ]. Morgan’s statement that “recognizing manipulation risks is essential for responsible crypto investing” New XRP ETF Filing Warns of Whale Manipulation Risk [ 1 ] highlights the ongoing need for transparency in markets still facing foundational issues New XRP ETF Filing Warns of Whale Manipulation Risk [ 1 ].
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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