Prominent blockchain investigator ZachXBT has criticized two prominent stablecoins, including Ripple’s RLUSD and Circle’s USDC, highlighting concerns about their compliance and adoption strategies.
In a now-deleted social media post, ZachXBT questioned Ripple’s RLUSD stablecoin, arguing that it lacked an authentic user base and relied on paid partnerships to create the illusion of organic growth.
Due to this, he said (and has not deleted) that he has more trust in other established stablecoin issuers like Circle, Paxos, or Tether.
However, an XRP supporter responded to ZachXBT’s critique, arguing that RLUSD is being actively used within Ripple’s payment network, which is integrated with millions of merchants via AEON and AlchemyPay.
The supporter noted that while Ripple, like other major projects, pays for partnerships to drive growth, this strategy should not be mistaken for non-organic adoption.
The supporter added:
“Ripple pays for partnerships just like literally every major stablecoin project does. That’s not non ‘organic’ adoption, that’s how scaling works in this space.”
Launched in December 2024, RLUSD is a US dollar-pegged digital asset issued under a New York trust license. It is backed by cash reserves and short-term US Treasurys, offering a regulatory-compliant option designed for global transactions.
Since its launch, RLUSD has shown impressive growth, reaching a market capitalization of over $455 million as of press time.
Slams Circle’s USDC
Meanwhile, ZachXBT’s criticism extended to Circle’s USDC, the second-largest stablecoin by market capitalization.
The on-chain investigator alleged that North Korean IT operatives use the token to move illicit funds. He criticized Circle for failing to detect and freeze suspicious activity, despite its claims of having strict compliance protocols.
He also pointed out that his investigations resulted in $3.6 million, or 27% of Circle’s total amount frozen in 2024.
Meanwhile, this is not the first time ZachXBT has criticized the USDC stablecoin issuer.
Last year, he claimed Circle delayed blacklisting addresses tied to the Lazarus Group, a North Korea-linked hacking organization involved in several high-profile crypto heists. ZachXBT alleged that this delay allowed Circle to profit from transactions linked to the group.
The post ZachXBT deletes call out of Ripple RLUSD adoption but questions trust appeared first on CryptoSlate.
