Major XRP Transfers Spark Controversy
Chris Larsen, the co-founder of Ripple, has received severe criticism after blockchain investigators revealed that wallets associated with him moved roughly $175 million worth of XRP, or 50 million XRP, to cryptocurrency exchanges in mid-July when the token reached a local price high.
According to ZachXBT, a well-known blockchain analyst, XRP briefly touched $3.60 at the time of the transfers. Soon after, the price fell below $3.10, marking a 10%+ dip. Around $140 million in XRP was reportedly transferred to centralized exchanges—typically a sign of potential selling.
One user remarked, “It’s unbelievable how much they build, and people still buy this.” This skepticism was widely echoed across crypto communities.
Accusations of “Dumping” Spark Market Backlash
The incident ignited a wave of backlash online. Many accused Larsen of “dumping” his tokens onto retail investors during a price surge. Critics argue such large transfers by executives could erode belief in XRP and challenge its decentralized image.
XRP has remained volatile, fueling the ongoing controversy. Currently valued at US$183 billion, Larsen’s wallets reportedly still hold 2.81 billion XRP—worth more than $8.4 billion, or nearly 5% of total supply.
This level of concentrated ownership has come under increased scrutiny, with experts raising concerns about liquidity risk in the event of further sell-offs.
Differing Views on the Motive
While critics accuse Larsen of profiteering, others argue the move may have strategic intent. Some believe these transfers are part of a redistribution strategy to enhance decentralization of XRP ownership.
A user on X (formerly Twitter) suggested the tokens might be getting into the hands of long-term holders, possibly strengthening the network. However, the absence of clear communication or a public statement invites doubt and speculation.
As of now, neither Larsen nor Ripple Labs has issued an official response.
A Pattern of Large Transfers
This isn’t the first time Larsen’s wallets made headlines. Since January 2025, his wallets have transferred $344 million worth of XRP through major exchanges including Coinbase, Bitstamp, and Bybit.
In January and July this year alone, one address moved 10 million XRP to Coinbase in a single instance.
This ongoing pattern of large-scale XRP transfers by Ripple executives continues to fuel suspicions about timing the market and avoiding full transparency—actions some see as incompatible with the principles of decentralization.
Price Impact and Market Outlook
Despite the sell-off fears, some analysts remain hopeful. According to Lukas Enzersdorfer-Konrad, Deputy CEO at Bitpanda, XRP could surpass its 2018 high of $3.84, but only if Bitcoin performs strongly and altcoin market sentiment improves.
He noted that XRP lacks a unique catalyst of its own and is dependent on Bitcoin’s movement and general capital flow within the crypto market.
Trust vs Transparency in the Crypto Space
This event reinforces the fragile balance of trust, transparency, and tokenomics in the cryptocurrency ecosystem. Even though blockchain offers a public ledger, fears of insider activity persist and affect investor confidence.
The ongoing legal battle between Ripple and the SEC adds another layer of uncertainty. Until resolved, these internal issues will continue to influence XRP’s performance and public perception.
Conclusion
The recent XRP transfers made by Chris Larsen have raised deep concerns about insider trading and token centralization at Ripple. As XRP’s price fluctuates and community trust erodes, this controversy underscores the urgent need for clearer governance, increased transparency, and responsible conduct from major crypto holders.
