A crypto wallet linked to Ripple co-founder Chris Larsen transferred 50 million XRP—valued at approximately $175 million—between July 17 and July 24, triggering backlash from the XRP community amid a broader market pullback.
Blockchain investigator ZachXBT highlighted the transactions in a Thursday post on X, formerly Twitter, noting that around $140 million of the XRP was sent to centralized exchanges or services, a move often associated with intentions to liquidate.
Community Raises Eyebrows Over Massive Transfers
“Wallets linked to Chris Larsen still hold over 2.81 billion XRP (worth $8.4 billion),” ZachXBT wrote, replying to a post that criticized the concentration of XRP holdings.
XRP is currently trading near $3.09, with a total market cap of $183 billion.
This means Larsen’s holdings represent roughly 4.6% of the entire XRP supply—a concentration that could exert significant sell-side pressure if sold quickly.
The community reaction was swift, with some users accusing Larsen of “dumping” his holdings just as XRP reached a local high above $3.60 on Friday.
The timing of the transfers raised concerns, as XRP then fell below $3.10 within days.
Accusations of Market Manipulation
Some X users interpreted the move as a strategic sell at the top of a rally.
“Chad for dumping on his autistic fan base,” one user posted bluntly.
ZachXBT responded, “Game is game,” echoing the sentiment of market pragmatism.
Others voiced broader concerns about what they described as a repeated pattern of insider selloffs, questioning why XRP remains a top-five crypto despite these events.
“How does Ripple still hold a top-five spot with all this predatory dumping?” one user asked.
Some Defend Larsen’s Intentions
While criticism was widespread, not everyone saw the move as malicious.
One X user, 0xLouisT, suggested Larsen might be decentralizing his holdings.
He wrote that the sales could be part of “decentralizing his holdings to longer-term holders to ensure a fair decentralization of the network and supply.”
At the time of publication, Larsen had not issued a public statement regarding the transfers.
Ripple also did not respond to requests for comment.
XRP’s Long-Term Outlook Still Positive
Despite the recent controversy, some analysts remain bullish on XRP’s long-term prospects.
Lukas Enzersdorfer-Konrad, deputy CEO at Bitpanda, suggested XRP could still challenge its all-time high of $3.84 set in 2018.
He noted that such gains will rely heavily on favorable market conditions and a continued rotation of capital from Bitcoin into alternative cryptocurrencies.
“There’s no specific catalyst pushing XRP,” Enzersdorfer-Konrad said, “so broader market momentum is key.”
As XRP attempts to stabilize around the $3.09 mark, all eyes remain on whether Larsen’s actions will trigger further selloffs or if investor confidence can hold steady amid the controversy.