By Key Points
- Chris Larsen moved 50M XRP after XRP’s all-time high of $3.65.
- $140M worth of tokens hit exchanges, sparking a sharp price drop
- Over 2.81B XRP (worth $8.4B) still sits in Larsen-linked wallets
- 2012 founder agreement resurfaces, highlighting centralization risks
Ripple Co-Founder Chris Larsen sparked major market waves this week after transferring $140 million worth of XRP right after the token hit a new all-time high of $3.65 on July 17.
Blockchain analyst ZachXBT traced 50 million XRP—originating from Larsen-controlled wallets—moving to multiple addresses, with a substantial amount landing on centralized exchanges and off-ramp services. This sudden move sent XRP sliding more than 11%, dipping under $3.25 before rebounding slightly.
uber drivers in pain https://t.co/bD9iYR9NqN pic.twitter.com/Zyxnui88jI
— blanc (@blancxbt) July 23, 2025
On-chain data from CryptoQuant shows a clear spike in wallet activity linked to Larsen during this period. His wallet balances dropped sharply between July 17 and July 24, mirroring XRP’s peak and decline. Traders quickly reacted, with sell pressure accelerating as the transactions were spotted in real time.
These developments have reignited concerns over the outsized influence early Ripple insiders still have on XRP’s market behavior. Despite the sale, Larsen continues to control over 2.81 billion XRP—valued at approximately $8.4 billion.
This massive reserve presents an overhang risk, especially if more tokens are sold directly into the market.
The pattern isn’t new. During the 2017–2018 bull run, similar wallet activity from founders aligned with market tops and triggered steep corrections. Now, the crypto community is questioning whether insider moves are again playing a role in capping XRP’s price rallies.
We’ve seen similar sell pressure stories before, like ARK Invest’s Coinbase selloff that shook investor confidence, or the Tornado Cash scandal that disrupted DeFi protocols and sparked massive outflows.
XRPL – Chris Larsen (Ripple Co-Founder) Address Balance. Source: CryptoQuant – Techtoken
Early XRP Deal Highlights Centralization Risks
Making matters more controversial, a 2012 agreement between Ripple’s three founders—Chris Larsen, Jed McCaleb, and Arthur Britto, resurfaced on social media, adding fresh perspective to the centralization debate.
The document reveals that Arthur Britto was awarded 2% of the entire XRP supply (then referred to as Ripple Credits) and was granted unrestricted lifetime access to build on the Ripple protocol without corporate oversight.
🚨 HISTORICAL DOCUMENT LEAKED 🚨
Signed on Sept 17, 2012, this agreement between Chris Larsen, Jed McCaleb, and Arthur Britto confirms that Britto received 2% of ALL XRP (then called “Ripple Credits”) and more importantly, it gave him lifetime rights to build on the Ripple… pic.twitter.com/lyZfZNJqPw
— Echo 𝕏 (@echodatruth) June 3, 2025
While this may seem like a relic from XRP’s early days, it underscores a structural issue: a significant portion of the XRP supply was distributed to a small group of founders. These allocations, still largely intact, leave the asset vulnerable to large-scale selloffs, especially during bullish cycles.
The recent timing of Larsen’s selloff—coming just days after XRP’s price peak—appears to be a calculated move, drawing further parallels to the 2018 crash. Back then, large transactions from co-founder wallets preceded a sharp, months-long downturn in price.
Although Ripple has spent years distancing itself from accusations of centralization, these resurfacing documents and on-chain behaviors are putting those efforts to the test once again.
🤔Question time🤔
👉Snagged or just a nothing burger!!
What say you? Comment below👇
XRP News Today: Chris Larsen Sends $140M XRP to Exchanges as Price Drops 15% from 7-Year High https://t.co/D08d3vy3x0 pic.twitter.com/LXKMjGOKOc
— Johnny Krypto (Good Evening Crypto Co-Host) (@johnnykrypto00) July 25, 2025
This level of control among insiders has drawn comparisons to other manipulated market events, such as the Crypto Beast dump scam, where early holders dumped tokens for massive profits while retail investors suffered losses.
Traders Watch XRP Price While Fearing More Insider Moves
Despite the market jitters, XRP has shown resilience in recent weeks. The token remains one of the top performers among large-cap altcoins for the quarter, even after the 11% correction triggered by Larsen’s move.
Technical charts indicate strong support forming near the $3.00 mark. Analysts are now watching for a decisive breakout above the $3.40–$3.50 range to confirm a new bullish trend. But even as some traders look for entry points, many are keeping an eye on Ripple’s co-founder’s wallets.
The fear is not just about one-time selling pressure—it’s the uncertainty of when the next insider dump might come. With over $8 billion in XRP still sitting in founder wallets, even rumors of an upcoming transfer can spook investors and trigger a sell-off.
Some market watchers suggest that if Ripple insiders conduct future sales through OTC (Over-the-Counter) desks or private institutional channels, the price impact could be mitigated. But that requires a level of transparency and intent that hasn’t always been demonstrated.
The Ripple team has long argued that its holdings are managed responsibly, yet real-time blockchain data often tells a different story. For the market to truly trust XRP’s growth, insider activity must be addressed more openly and managed with clearer protocols.
Until then, the community may continue to treat every large founder transaction as a warning signal, making it harder for XRP to break free from the shadow of its early centralized roots.
Ripple’s situation echoes wider concerns in the industry—like El Salvador’s Bitcoin policy being called into question, or the NFT flameout on Ethereum, where early hype turned into long-term skepticism.
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