Ripple Co-Founder Sparks Sell-Off Fears After $175M XRP Transfer Amid Price Rally

Ripple’s co-founder Chris Larsen has triggered renewed volatility in the XRP market after transferring nearly $175 million worth of XRP to multiple wallets, with a significant portion routed to centralized exchanges. The move, which came as XRP approached a multi-month price peak, has raised concerns of a potential market dump and revived long-standing debates about token distribution and insider activity.

According to reports, the transfers were conducted between July 17 and July 24, 2025. Approximately 50 million XRP was moved, with around 40 million reportedly reaching exchanges or intermediaries, sparking speculation of an impending liquidation.

Large Scale Transfers Track With Market Timing

The timing of Larsen’s transfers has not gone unnoticed. XRP had rallied significantly in recent weeks, buoyed by broader crypto market optimism and growing investor interest following Ripple’s partial legal victory over the U.S. Securities and Exchange Commission in 2023.

Data from CoinMarketCap shows XRP reached as high as $3.65 before retracing to the $3.08–$3.15 range following news of the transfer. The roughly 14% drop closely followed the appearance of large wallet outflows, aligning with historical patterns where insider activity often precedes price dips.

“This isn’t the first time we’ve seen major price movement follow wallet shifts by Ripple’s early stakeholders,”

said Ryan Wu, a crypto markets analyst.

“It tends to spook retail investors, and in highly emotional markets like crypto, that can trigger chain reactions.”

Also, read on about how XRP’s Seven-Year Wait Finally Pays Off

On-Chain Evidence Points to Exchange Liquidity

Blockchain tracking tools indicate the XRP was distributed across at least four addresses, with most of the volume eventually reaching exchange wallets. Some of the tokens were sent to unknown new wallets, raising additional questions about the intended destination.

A report by Cointelegraph confirmed that wallet activity was “consistent with pre-sale behaviors” seen in past XRP dumps, including prior incidents involving Jed McCaleb—another Ripple co-founder notorious for structured XRP selloffs during early bull markets.

ZachXBT noted on X (formerly Twitter): “Chris Larsen’s wallet has transferred 50M XRP over the past 10 days. At least $140M worth has been sent to centralized exchanges.” The analyst later clarified that this is not part of any scheduled escrow or company-led liquidity event.

XRP Price Holds Near Key Support But Volatility Remains

Following the initial price dip, XRP stabilized above $3.10, with trading volumes spiking as traders attempted to digest the market impact. Technical analysts view the $3.00–$3.15 range as a key support zone.

XRP’s performance had been among the strongest in the large-cap crypto segment this quarter, buoyed by speculation around an XRP ETF and expanded adoption through Ripple’s institutional banking partners. Ripple continues to expand its On-Demand Liquidity (ODL) product in regions including Southeast Asia and the Middle East.

Ripple Distances Itself From Larsen’s Actions

Despite the optics, Ripple Labs has yet to issue a formal statement regarding the transfer. Historically, the company has emphasized that token holdings and decisions by founders such as Chris Larsen and Jed McCaleb are independent from the company’s strategy.

According to a 2024 legal filing reviewed by Decrypt, Ripple reiterated that Larsen’s holdings are “personal assets” not tied to Ripple’s operational treasury or ongoing partnerships.

Still, the company has faced criticism for failing to introduce mechanisms to limit sudden token dumps. Over 2.8 billion XRP about 4.5% of the total supply remains in wallets tied to Ripple co-founders, a concentration that continues to weigh on the token’s decentralization narrative.

What’s Next for XRP Traders?

The XRP community was divided in its reaction to the news. On Binance Square, several users voiced frustration over what they perceive as recurring price manipulation. Others downplayed the event, citing growing adoption and legal clarity as more significant drivers of long-term value.

Traders and investors are closely monitoring on-chain data for signs of further movement from Larsen-linked wallets. While the co-founder has not confirmed a sale, historical data suggests large transfers are typically followed by gradual offloading.

Short-term traders are advised to watch resistance at $3.30 and support at $3.00, while long-term holders remain focused on Ripple’s ongoing partnerships and developments in token utility.

Market analysts also point to macroeconomic factors, such as rate decisions and regulatory news, as potential influences on XRP’s next move. Any renewed institutional interest especially around a spot ETF could help absorb selling pressure and revive momentum.

Conclusion

The $175 million XRP transfer by Ripple co-founder Chris Larsen has revived old questions about supply centralization and founder influence just as the token gained bullish traction. While the price has so far absorbed the shock, the market’s reaction underscores the sensitivity of crypto ecosystems to large-holder actions.

As XRP hovers above key support and Ripple pushes forward on adoption fronts, the next few days will be crucial in determining whether the token’s recent gains can be sustained or if this selloff becomes a pivot point in market sentiment.

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