My vantage point as a Johannesburg resident gives me a different view on the overall crypto narrative. It’s a world away from the summer breakouts hype and of course, those bold Bitcoin at $200K predictions. Here, the digital gold rush appears much sharper through the lens of many as fool’s gold. First, we’re told that XRP is the great breakthrough, the cross-border payment innovation, the financial inclusion magic wand. Whose doorbell rings when the rollercoaster dives?

Promises vs. Harsh Realities On Ground

Anna Thandi Thandi, a single mother, speaks to the author Cathy put her life savings into XRP, lured in by the promise of high returns with minimal risk. She dreamed of one day sending money back home to her family in rural Zimbabwe. She wanted to do it without resorting to the high costs of traditional remittance providers. For such a close, aspiring capitalist, glorious moment, she knew she was on the cutting edge, a wave financial revolution. Then came the dips. The stomach-churning, hope-evaporating dips. Right now, making a living is proving to be very difficult for Thandi. With every percentage point decrease, her hopes for paying back her family’s sacrifices slip farther away.

Thandi's story isn’t unique. Street vendors, taxi drivers and teachers have all recounted this same story to me. These people put their hope and life savings into XRP, lured in by the promotion and marketing blitz around it. They were not investing in technology, they were investing in hope.

The crypto cabal loves to discuss “bullish” and “bearish” sentiments, discuss the prospects of ETFs and institutional investors. They analyze charts and predict breakouts. They hardly ever talk about the human cost of this volatility. This problem disproportionately affects the people who are least able to afford to do so.

Is XRP Really Solving Problems, Or...?

We heard the same pitches with XRP, that it’s not a security because it’s faster and cheaper than the existing banking system. Or is it just the shiny new object? Or is it merely pushing the risk onto those who are most vulnerable and least able to afford it? But naturally, the promise of being able to bypass the traditional, established financial systems is pretty enticing — particularly in countries where those financial systems are broken. Yet what is the point of creating a faster, cheaper transaction, if the value disappears in transit before it can get to its intended beneficiary?

Let's be honest, the regulatory uncertainty surrounding XRP doesn't help. It creates a breeding ground for scams and exploitation, where vultures can more easily prey on the unsuspecting and the vulnerable. Are we truly empowering these constituents, or just arranging them on the backfoot toward disappointment and debt-fortune?

Think about this: the lack of obvious regulatory guidance has produced Wild West conditions. It’s as though you were building a new highway and didn’t put in any speed limits or state troopers. Okay, maybe you will get there quicker, but you’ll be exponentially more likely to get in a serious crash. As in most cases, the crashes take the greatest toll on those who are most vulnerable.

Who Profits From The Volatility?

This is the crypto market’s moment of truth, they argue. A breakout or a collapse. But for whom? While some analysts are watching Bitcoin's every move, predicting a rise to $200,000 or a fall to $60,000, I'm watching the faces of people like Thandi, wondering how they will survive this rollercoaster.

The "ponzi pump" argument is a harsh one, but it raises a valid question: are these gains driven by genuine innovation and adoption, or simply by new money flowing in? If it’s the latter, then who benefits in the end. Who reaps the lion’s share of these benefits—is it the retail investor? Or do the early adopters, whales, and exchanges cash in on transaction fees no matter what the market is doing?

The real story is, for many, that volatility is a feature, not a bug. It creates opportunities for arbitrage, for short-selling, for making money off the misfortune of others. While some may argue that this is simply the nature of the market, I believe we have a responsibility to ask who is bearing the brunt of this volatility.

  • The Whales: They have the capital to weather the storms and manipulate the market.
  • The Exchanges: They profit from every transaction, regardless of price fluctuations.
  • The "Gurus": They sell courses and advice, often preying on the hopes and fears of inexperienced investors.

The crypto space has to cut through the noise and begin answering these foundational questions. We need to engage more on the issue of consumer protection, the issue in financial literacy, and most importantly, the issue around responsible regulation. Let’s make sure that this promise of financial inclusion doesn’t end up being a financial exploitation nightmare.

  • The Everyday Investors: Like Thandi, who risk their savings on a volatile asset they may not fully understand.
  • The Vulnerable Populations: Who are often targeted by scams and predatory practices.

It's time to ask ourselves: Are we building a future where everyone benefits, or are we simply creating a new system of winners and losers, where the rich get richer and the poor get poorer? Because from the perspective in which I sit, here in Johannesburg, the answer is anything but obvious.

It's time to ask ourselves: Are we building a future where everyone benefits, or are we simply creating a new system of winners and losers, where the rich get richer and the poor get poorer? Because from where I stand, in Johannesburg, the answer is far from clear.