XRP News Today: Ripple co-founder's $9B XRP wallet triggers 13% price drop warnings

Ripple co-founder Chris Larsen has drawn renewed scrutiny as a wallet historically linked to him retains $9 billion worth of XRP tokens available for sale, according to recent analyst warnings. The wallet’s activity, including a 50 million XRP transfer to exchanges in early July, has intensified concerns about potential sell-side pressures and market stability [1]. Analyst J. A. Maartunn of onchain analytics platform CryptoQuant emphasized the risk, stating that the remaining 2.58 billion XRP—valued at approximately $8.83 billion—could significantly exacerbate downward price momentum if further liquidated. “If $200 million was just the warm-up… what’s next?” he questioned in a social media post [2].

The recent outflows occurred amid XRP’s volatile price trajectory. The token had surged to a post-2021 high of $3.60 on July 17 but has since corrected to $3.18, a 13% decline. This slump followed mixed social media reactions to Larsen’s transactions, with some interpreting the moves as profit-taking while others accused him of offloading holdings at peak prices [3]. The wallet’s balance—equivalent to 0.6% of the total XRP supply—has drawn comparisons to past crypto whale-driven sell-offs, with analysts noting the potential for liquidity shocks even from partial disposals.

Market participants have amplified these concerns. Trader ManLy highlighted the risk of investors becoming “exit liquidity” in a Twitter post, warning that Larsen’s $175 million July 25 outflow and a prior $140 million transfer signaled a strategic approach to unlocking value. “You might be his exit liquidity,” the post cautioned, urging caution amid ongoing volatility [4]. These transactions coincided with broader crypto market turbulence, including a Bitcoin price dip triggered by an 80,000 BTC sale, though that event is not directly linked to XRP dynamics [5].

The analyst warnings underscore the dual role of high-net-worth individuals in crypto markets: ecosystem builders and potential destabilizers. Larsen’s activity has raised questions about Ripple’s corporate strategy and regulatory clarity for XRP, which remains unregistered in the U.S. despite ongoing legal battles. While Ripple has not publicly commented on the specific transactions, the lingering $9 billion balance in Larsen’s wallet has prompted calls for caution. “Don’t be the exit liquidity. Protect yourself,” Maartunn reiterated, advising investors to hedge positions as liquidity risks persist [6].

The market’s reaction to these developments remains uncertain. XRP’s price performance has been constrained by weak fundamentals, despite its role in the broader altcoin recovery following Bitcoin’s consolidation. Analysts warn that further sales from Larsen’s wallet could deepen the correction, particularly if institutional demand wanes ahead of an anticipated August market lull. The situation highlights the challenges of balancing retail optimism with the risks posed by whale activity in an unregulated asset class [7].

Source:

[1] [title1] [https://cointelegraph.com/news/xrp-wallet-linked-to-chris-larsen-still-has-9b-to-sell-analyst-warns]

[2] [title2] [https://coincentral.com/ripple-co-founder-chris-larsen-sells-175-million-xrp-after-all-time-high/]

[3] [title3] [https://ts2.tech/en/bitcoin-whale-dumps-9b-altcoins-whipsaw-nfts-boom-and-regulators-swoop-crypto-news-roundup-july-25-26-2025/]

[4] [title4] [https://www.coindesk.com/daybook-us/2025/07/24/bitcoin-demand-outstrips-supply-ahead-of-august-lull-crypto-daybook-americas]

[5] [title5] [https://www.ainvest.com/news/xrp-news-today-xrp-plummets-10-33-whale-outflows-trigger-speculative-exit-2507/]

[6] [title6] [https://cointelegraph.com/news/xrp-wallet-linked-to-chris-larsen-still-has-9b-to-sell-analyst-warns]

[7] [title7] [https://cointelegraph.com/news/xrp-wallet-linked-to-chris-larsen-still-has-9b-to-sell-analyst-warns]