XRP Ledger Yield Protocol Accused of Using XRP Liquidity To Fuel Insider Profits

The XRP Ledger (XRPL) community is witnessing a controversy owing to an on-chain analyst’s recent allegations. They accused that yield protocol SOIL enabled its insider wallets to profit by selling its own tokens using XRP liquidity during its XRP Ledger launch.

XRP Ledger’s New Yield Protocol In Crosshairs

An on-chain analyst named “Skeptic” on X argued that the blockchain data suggested that there was no strong selling pressure for SOIL token from average investors. Rather, the user claimed the sell pressure came from wallets that had received SOIL tokens directly from the issuer.

“The main sell pressure is not coming from random holders. It is coming from wallets that received SOIL directly from the issuer and then quickly sold into the AMM,” Skeptic wrote. His comments grabbed market attention, especially since the XRP Ledger v3.2.0 was released recently.

The post states that one wallet was involved in 20 transactions receiving approximately 68,766 SOIL. This stack was then sold for approximately 11,457 XRP. Another wallet allegedly received 17,098 SOIL before selling around 17,998 SOIL for 6,769 XRP. Meanwhile, a third received 20,000 SOIL. Out of this, it offloaded approximately 17,628 SOIL for 6,683 XRP.

SOIL on XRPL is already showing a very ugly on-chain pattern.

I checked the flow around the XRPL SOIL issuer address the @soil_farm itself published for trustlines and trading:
rfmS3zqrQrka8wVyhXifEeyTwe8AMz2Yhw

The main sell pressure is not coming from random holders.
It is… pic.twitter.com/jJ6s3s9Czx

— Skeptic (@skeptic589) June 26, 2026

Skeptic said that the pattern “does not look like healthy price discovery” and instead “looks like issuer distribution followed by immediate dumping.” The user also asserted that the XRP community was “used as exit liquidity.”

Apart from that, the analyst noted that SOIL was trading in the Ethereum, Polygon, MEXC, Gate.io, BitMart and BVOX markets prior to its XRP Ledger launch. The post says while the tokens were sold on the XRPL, CoinMarketCap data showed a massive surge in the price of SOIL. The token price skyrocketed by about 53% in the last 24 hours from approximately $0.06147 to $0.09861.

Meanwhile, MEXC has also reported positive performance in the past 24 hours. Thus, Skeptic pointed out that “XRPL was not joining a fair, balanced market. XRPL liquidity was effectively used to absorb supply distributed from the issuer while price action elsewhere stayed stronger.”

The post concluded that what happened on XRP Ledger was “blatant unprofessionalism.”

What Did The SOIL Team Respond?

The team of SOIL on XRP Ledger vehemently denied the charges. They claimed the price surge came about due to “high demand on thin liquidity” rather than insider selling.

“The price spike on XRPL DEXes happened because high demand hit thin liquidity. Simple as that,” the team wrote. It added that “SOIL team doesn’t influence the token price, the market arbitrages on its own.” Moreover, they accused that Skeptic was fueling FUD in the community.

Skeptic went on to say, “At the time of launch, you were the only ones who had the tokens needed to provide liquidity.” Soil then replied, “The wallet addresses you shared are bridge addresses, not team/project wallets.”

The protocol also mentioned that the difference in prices is frequent between decentralized and centralized exchanges when the market making is limited. “The liquidity that was in place worked fine… It only became an issue when demand spiked hard and fast,” SOIL said. They added that arbitrage between exchanges was “literally the mechanism working as intended.”

Skeptic was still not satisfied. Hence, he ended up responding, “In other words, you weren’t prepared for that level of demand and didn’t provide enough liquidity.” Now, Soil’s XRP Ledger lending protocol upgrade is also under fire.

After another user inquired if locked up RLUSD deposits were in danger, the discussion further heated up. Skeptic said there was no proof for that and emphasized the criticism was only about the token launch. He concluded, “Simply put, they screwed up.”

Meanwhile, in another update, it’s worth noting that XRP Ledger overtook Ethereum in terms of RLUSD supply.

For those looking for crypto-backed borrowing, visit our page on Crypto Loan Platforms.