Key facts
- An on-chain analyst alleged that the XRP Ledger yield protocol SOIL used insider wallets to profit by selling its tokens using XRP liquidity.
- The analyst presented data showing wallets receiving SOIL directly from the issuer sold them for XRP.
- Specific transactions detailed wallets receiving thousands of SOIL tokens and selling them for thousands of XRP.
- The SOIL team denied the accusations, stating price surges were due to high demand on thin liquidity.
- SOIL claimed the wallets identified by the analyst were bridge addresses, not team wallets.
An on-chain analyst, known as Skeptic on X, has accused the XRP Ledger (XRPL) yield protocol SOIL of enabling insider profits during its launch. Skeptic alleged that wallets receiving SOIL tokens directly from the issuer sold them into the Automated Market Maker (AMM) using XRP liquidity, a pattern the analyst described as "blatant unprofessionalism" and not indicative of healthy price discovery.
Blockchain data presented by Skeptic indicated specific transactions where wallets received substantial amounts of SOIL tokens and subsequently sold them for XRP. For instance, one wallet received approximately 68,766 SOIL and sold it for 11,457 XRP, while another sold 17,998 SOIL for 6,769 XRP. The analyst noted that SOIL had been trading on other markets like Ethereum and Polygon prior to its XRPL launch, and that the XRPL liquidity was used to absorb supply while prices elsewhere remained stronger.
The SOIL team vehemently denied these accusations, attributing the price surge on XRPL decentralized exchanges (DEXes) to "high demand on thin liquidity." They stated that the SOIL team does not influence token prices and that market arbitrage functions as intended. The team further clarified that the wallet addresses shared by Skeptic were bridge addresses, not team or project wallets, and that price differences between decentralized and centralized exchanges are common with limited market making.
Skeptic remained unconvinced, suggesting that SOIL was not prepared for the demand and failed to provide adequate liquidity. The controversy also extended to concerns about locked RLUSD deposits, though Skeptic emphasized his criticism was focused on the token launch itself. Separately, XRP Ledger has reportedly overtaken Ethereum in terms of RLUSD supply.