TLDR
- Ripple co-founder Chris Larsen sold $140-175 million worth of XRP tokens immediately after the cryptocurrency reached its all-time high of $3.65 on July 17, 2025
- The massive token transfers to exchanges caused XRP’s price to drop over 10% from $3.65 to around $3.09 within days
- Larsen still controls over 2.8 billion XRP tokens worth approximately $8.4 billion at current prices
- A 2012 agreement revealed early founder allocations showing the centralized distribution of XRP among insiders from inception
- The XRP community remains divided over whether these transfers represent market manipulation or legitimate decentralization efforts
XRP experienced a sharp 10% decline after Ripple co-founder Chris Larsen transferred millions of tokens to exchanges following the cryptocurrency’s record high. The selling activity has reignited debates about centralization and insider influence in the XRP ecosystem.
Between July 17 and July 24, 2025, Larsen moved 50 million XRP tokens worth approximately $175 million to four separate wallet addresses. On-chain analyst ZachXBT confirmed that nearly $140 million of these tokens landed directly on centralized exchanges or off-ramp services.
Since July 17, 2025 an address linked to Ripple co-founder Chris Larsen transferred out 50M XRP ($175M) to four addresses.
~$140M ended up at exchanges/services
30M XRP recipient
rPS9kVPbgZF4vXq2hs6s9Xv2754qdRau98
rnQXgGAjqbF4KoBpcBK5YBHyZEL7nGWWoi
10M XRP recipient…— ZachXBT (@zachxbt) July 24, 2025
The timing proved critical for market sentiment. XRP had just reached its all-time high of $3.65 on July 17 before beginning its descent to $2.99 by July 24.
On-chain data from CryptoQuant shows Larsen’s wallet activity spiked during this exact period. His wallet’s cumulative balance dropped as XRP’s price reacted quickly to the selling pressure.
The cryptocurrency fell from its peak near $3.65 to just under $3.25 before partially recovering. This pattern mirrors similar behavior observed during the 2017-2018 bull run when founder wallet outflows coincided with price tops.
Larsen’s Holdings Create Market Overhang
Current blockchain data reveals that Larsen-linked wallets still control over 2.81 billion XRP tokens. At present prices, this represents approximately $8.4 billion in potential selling pressure.
This creates what analysts describe as a structural overhang for the token. The concentration of supply among early insiders remains a persistent concern for the XRP market.
Larsen’s influence extends beyond this recent activity. In January 2025 alone, he reportedly moved more than $344 million worth of XRP tokens.
This included an $8 million transfer to Coinbase on July 15 and 16 when XRP traded near $3.25. The consistent pattern of sales near price peaks has drawn criticism from retail investors.
Historical Agreement Reveals Founder Allocations
A 2012 agreement between Ripple’s founders recently resurfaced on social media platforms. The document shows the original distribution between Chris Larsen, Jed McCaleb, and Arthur Britto.
According to the agreement, Britto received 2% of all XRP tokens, then called Ripple Credits. He also gained lifetime rights to develop on the Ripple protocol without company approval.
This historical document reinforces concerns about XRP’s centralized distribution at inception. The agreement highlights how early insiders maintained control over large portions of the total supply.
The revelation adds context to ongoing debates about whether XRP operates more like a traditional security than a decentralized cryptocurrency. Critics point to founder control as evidence of centralization.
Community Response Splits Along Lines
The XRP community has responded with mixed reactions to Larsen’s recent transfers. Some members view the moves as part of Ripple’s stated long-term decentralization strategy.
Others see the transfers as opportunistic selling that harms retail investors. Critics have accused Larsen of timing sales to maximize profits at the expense of smaller holders.
The lack of official communication from either Ripple or Larsen has fueled speculation. Neither party has provided clarification about the purpose or strategy behind the transfers.
This silence has increased market nervousness and community distrust. Some supporters argue the moves represent legitimate redistribution efforts rather than pure profit-taking.
The token maintains a market capitalization of nearly $183 billion despite the recent volatility. XRP reached a one-month high of $3.56 on July 22 before declining.
Technical indicators show strong support near the $3 level according to market analysts. Traders are watching for a confirmed rebound past the $3.40-$3.50 range to signal recovery.
However, market sentiment remains cautious due to the visible influence of founder activity on price movements. The recent transfers demonstrate how individual actions can impact the broader market.
