Co-Founder of Ripple Sends $140M XRP to Exchanges as Token Value Decreases by 8%
Chris Larsen, one of the founders of Ripple, has recently transferred $140 million worth of XRP tokens to cryptocurrency exchanges between July 17 and July 24, 2025. These movements have sparked concerns within the crypto community regarding potential insider selling and how it might impact the price and decentralization of the token. ZachXBT, a blockchain investigator, was able to identify these transfers, noting that a significant portion of the $175 million worth of XRP that Larsen moved was sent to exchange wallets. This action is typically interpreted as a precursor to selling off assets. The timing of these transfers aligned with an 8% decrease in the price of XRP, which hit a weekly low of $2.99 on July 24, leading to increased speculation about the significance of these transactions.
Furthermore, the transfers closely coincided with XRP breaking below its 4-hour moving average trendline, a technical indicator used by traders to gauge bearish momentum. While the overall decline in the crypto market may have contributed to the drop in price, the direct correlation between Larsen’s actions and the price decrease has raised concerns about potential sell-off pressures. Despite these movements, Larsen’s wallets still hold an impressive 2.81 billion XRP, valued at approximately $8.4 billion, demonstrating his significant influence over the token’s supply and potential to impact the market further.
The recent transactions have reignited discussions surrounding XRP’s decentralization. More than 55% of XRP’s total supply is centralized in insider wallets, including those of Ripple’s leadership team, prompting questions about the token’s vulnerability to price fluctuations driven by large-scale sell-offs. Critics argue that such high levels of centralization erode confidence in XRP’s long-term stability, especially amidst Ripple’s ongoing legal disputes with U.S. regulators regarding the classification of the token as a security.
Analysts in the blockchain space highlight the challenges of monitoring insider activities within crypto markets. Unlike traditional financial markets where regulations on insider trading are stricter, the anonymity of blockchain transactions adds a layer of complexity in distinguishing between routine asset rebalancing and intentional dumping. As a result, there have been calls in the industry for more stringent disclosure requirements for major stakeholders in the crypto sphere, despite the absence of such regulations at present.
It is essential for stakeholders and investors to closely monitor wallet activities and technical indicators to anticipate potential shifts in XRP’s trajectory. Transparency in tracking insider movements is critical for evaluating risks and upholding investor trust in crypto assets, especially amidst periods of heightened market volatility influenced by macroeconomic factors and regulatory developments. Ripple, the company behind XRP, has not made any public statements regarding Larsen’s recent transactions, leaving many observers to ponder the delicate balance between insider liquidity needs and preserving the interests of retail investors in the ever-evolving landscape of the cryptocurrency market.
