{"id":21276,"date":"2024-11-18T09:30:20","date_gmt":"2024-11-18T09:30:20","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=21276"},"modified":"2024-11-18T09:30:20","modified_gmt":"2024-11-18T09:30:20","slug":"bitstamp-just-rug-pulled-the-xrp-community-claims-xpmarket-ceo","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=21276","title":{"rendered":"Bitstamp Just \u2018Rug Pulled\u2019 The XRP Community, Claims XPMarket CEO"},"content":{"rendered":"

Dr. Artur Kirjakulov, CEO and founder of XPMarket, has publicly accused<\/a> Bitstamp of executing a \u201crug pull\u201d against the XRP community. This serious allegation has ignited a contentious debate among industry stakeholders, raising questions about the stability and reliability of Bitstamp\u2019s involvement in XRPL-based financial instruments.<\/p>\n

Has Bitstamp Rug Pulled The XRP Community?<\/h2>\n

On Sunday, November 17, Dr. Kirjakulov took to X to voice his concerns regarding Bitstamp\u2019s recent actions. \u201cBitstamp literally has just rug pulled XRPL community,\u201d he claimed and asserted that Bitstamp had \u201cwithdrew more than 90% of liquidity from USD\/XRP and BTC\/XRP AMM Pools,\u201d a move he characterized as a \u201csilent\u201d and unannounced maneuver that has left the XRPL community in a precarious position.<\/p>\n

According to Kirjakulov, the absence of any formal statement from Bitstamp or RippleX exacerbates the uncertainty surrounding this liquidity withdrawal, potentially leading to \u201cextremely volatile\u201d trading conditions and significant price impacts for these asset pairs.<\/p>\n

Dr. Kirjakulov further highlighted the intricate relationship between Ripple and Bitstamp<\/a>, noting that \u201cRipple owns an equity share in Bitstamp.\u201d This connection suggests that Ripple\u2019s stake in Bitstamp may influence the exchange\u2019s strategic decisions within the XRPL space. The CEO of XPMarket expressed deep concerns about the assurance of a 1:1 conversion rate for Bitstamp-issued wrapped assets, drawing a parallel to the Stably incident where such guarantees were not honored. He emphasized, \u201cHow can anyone trust DeFi on XRPL, when official partners make such moves? Optics are terrible.\u201d<\/p>\n

The allegations did not go unnoticed within the XRPL community. Daniel Keller, CTO at Eminence and an XRPL ambassador, responded with skepticism regarding the authenticity of Kirjakulov\u2019s claims. Keller questioned the legitimacy of the accounts associated with the liquidity pools, stating, \u201cDo we know that\u2019s an official Bitstamp account? Looking back on the activation sequence it was activated via Binance, which is weird if Bitstamp runs it.\u201d<\/p>\n

In response, Dr. Kirjakulov maintained that the accounts in question were indeed affiliated with Bitstamp. He clarified, \u201cGoing through the accounts it is visible that they are clearly associated with Bitstamp, because they are also market making these tokens. There is literally no one else interested here in market making these tokens, because they are niche and unpopular.\u201d<\/p>\n

He further explained that the liquidity had been pulled back to a market-making (MM) account, reinforcing his assertion of Bitstamp\u2019s direct involvement. Kirjakulov also dismissed the significance of activation accounts, noting, \u201cActivation account does not mean anything. I activate my account from multiple exchanges<\/a> specifically to make less traceable.\u201d<\/p>\n

Keller pressed for more concrete evidence to support the claims. He asked: \u201cCan you share some of these connecting transactions because if you already looked them up it would be cool to share. An activation account is very important if you are an exchange supporting an LP, because you want people to know it\u2019s your company.<\/p>\n

Dr. Kirjakulov responded by emphasizing the strength of the circumstantial evidence pointing towards Bitstamp, stating, \u201cCircumstantial evidence? Yes. But this evidence points rather clearly into Bitstamp, as no one else has such a huge amount of these assets issued by them, other than someone affiliated by them. And circumstantial evidence is no excuse to ignore them.\u201d<\/p>\n

The discourse extended to the topic of Bitstamp\u2019s IOU services. Michael Nardolillo, a user on X, defended Bitstamp by highlighting its regulated status and the redeemability of its IOUs. He argued, \u201cThere\u2019s no guarantee Bitstamp will honor their IOUs?! That\u2019s like saying there\u2019s no guarantee you can withdraw your crypto from an exchange. Bitstamp is highly regulated, IOUs are always redeemable they are no different than holding an asset on an exchange.\u201d<\/p>\n

This defense was met with skepticism from Kirjakulov, who drew attention to past failures in the industry. He countered, \u201cSomewhere FTX creditors<\/a> did a few facepalms. Again, Stably did not honor 1:1 conversion. And there is nothing on Bitstamp or even GateHub sources to claim there will be 1:1 conversion and absolutely nothing of proof of funds.\u201d<\/p>\n

In an attempt to substantiate his defense, Nardolillo shared a screenshot from Bitstamp\u2019s website detailing their IOU service. The screenshot outlines that users can transfer value on the XRP Ledger through IOUs issued by Bitstamp in exchange for real assets like BTC, USD, EUR, or ETH.<\/p>\n

Dr. Kirjakulov highlighted a critical oversight in this arrangement. He stated, \u201cAnd this is the problem. This is the only way how you can make this swap. Also, it says absolutely nothing about 1:1 conversion. What if it depegs by 50%? Will they make 1 bUSD (which is worth 50 cents) swap to 1 USDT (which is worth 1 USD)?\u201d<\/p>\n

As of press time, the XRP community awaits an official response from Bitstamp. XRP traded at $1.15.<\/p>","protected":false},"excerpt":{"rendered":"

Dr. Artur Kirjakulov, CEO and founder of XPMarket, has publicly accused Bitstamp of executing a \u201crug pull\u201d against the XRP community. This serious allegation has ignited a contentious debate among industry stakeholders, raising questions about the stability and reliability of Bitstamp\u2019s involvement in XRPL-based financial instruments. Has Bitstamp Rug Pulled The XRP Community? On Sunday, […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-21276","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/21276"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21276"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/21276\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}