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Really, the term is derogatory to white people just as other terms used against people of other skin colors is. Did you have a say in the color of your skin that was assigned to you before you were born and do you appreciate someone demeaning you because of that color? Yes, I know there are people who use put-downs for any number of people for whatever their skin color may be, but it is wrong to do so, whatever that color is. Color does not define the person. If you assign a negative to a color you are foolish, the problem lies with you, not them.
And yet all white people have a degree of white privilege. It's really not a derogatory, racist slur, it's a term used to refer to a widespread and unfortunate phenomenon in our society.