I was told by a Black friend of mine a long time ago that the term cracker originated from the idea that it's a man holding a whip.

It is considered a disrespectful slur, but it is nowhere near as bad as the N word in my mind. I seem to have managed to disassociate myself with whites who use that term, because I haven't heard it personally in decades.

If I did hear a "friend" say it, I would end my association with that person immediately.