XRP Plunges 14% After Ripple Co‑Founder Moves $175M to Exchanges
Between July 17 and July 24, a wallet linked to Ripple co‑founder Chris Larsen transferred 50 million XRP, valued at approximately $175 million, to four other addresses. Roughly $140 million of that sum landed on centralized exchanges, fueling alarm among market watchers due to the strong sell-off implications.
The timing couldn’t have been more critical: these transfers occurred just after XRP hit a local high of $3.60–$3.65, marking its strongest level since 2021. Within a day, XRP dropped to the $3.06–$3.10 range, wiping out around 14% of its value in the span of a week.
Why Are Investors Concerned?
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Exchange inflows signal possible sell pressure: On‑chain analysts interpret such large transfers—especially those routed to exchanges—as an anticipatory move toward liquidating holdings.
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Significant long‑liquidations occurred: The sharp correction triggered over $105 million in XRP long liquidations, making it one of the largest single‑token liquidations in recent crypto markets.
Larsen's Remaining Holdings and Historical Context
Despite the recent outflow, wallets linked to Larsen still hold over 2.81 billion XRP, constituting nearly 4.6% of XRP’s total supply (valued at roughly $8.4 billion).
Blockchain historians point to a 2012 founder allocation agreement that distributed large shares of XRP to insiders—including co‑founders Chris Larsen, Jed McCaleb, and engineer Arthur Britto—highlighting concerns over systemic centralization and persistent insider influence.
Price Action & Market Outlook
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From peak to trough: After peaking at $3.64–$3.65, XRP declined to as low as $2.99–$3.10 over subsequent days, before moderating near $3.08.
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Support holds near $3: Analysts note that the $2.90–$3.00 zone appears to be providing strong support. Even amid the correction, some technical models suggest the dip may be setting up for a renewed upward leg toward $6.00 in the medium term.
Community Reactions
The XRP community is divided:
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Critics accuse Larsen of opportunistic profit-taking, pointing to the risky timing and lack of transparency. One on‑chain analyst quipped, “You’re the exit liquidity. Think twice.”
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Others argue that the transfers may reflect attempts at decentralizing his holdings, redistributing XRP to new or longer‑term participants.
Summary Table
| Category | Details |
|---|---|
| Period of transfer | July 17–24, 2025 |
| Total XRP moved | ~50 million tokens ≈ $175 million |
| Directed to exchanges | ~$140 million |
| XRP price peak | ~$3.60–$3.65 |
| Price after sell-off | ~$3.06–$3.10 (≈14% drop) |
| Larsen’s residual holdings | ~2.81 billion XRP (~4.6% of supply) |
| Community tone | Mixed—some view as selling, others decentralizing |
| Technical outlook | Support at ~$3 with targets toward $6 |
The recent transfers by Chris Larsen—occurring moments after XRP reached its highest levels in years—have reignited long-standing debates about insider influence and token centralization. While the market managed to stabilize around $3.10, the underlying volatility reflects structural risks stemming from founder wallet concentration. Whether this behavior marks profit-taking or strategic redistribution remains unclear, but it has undeniably rattled short-term sentiment.
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