XRP News Today: Chris Larsen Sparks Backlash Sending $140M XRP to Exchanges Near All-Time High, Price Dips 15%

Chris Larsen, co-founder of Ripple, has ignited controversy by transferring $140 million worth of XRP to centralized cryptocurrency exchanges during a period when the token was nearing a seven-year all-time high of $3.65. The transaction, executed between July 17 and July 24, 2025, involved 50 million XRP distributed to four addresses, with approximately $140 million allocated to exchanges. This move has been widely perceived as a potential premeditated sell-off, given the timing coincided with XRP reaching a valuation of $215 billion—briefly surpassing McDonald’s market capitalization—and sparking accusations of exploiting bullish momentum [1].

The ripple effect (pun intended) of Larsen’s actions has been significant. Community members and market observers criticized the transfer as ethically questionable, particularly since XRP’s price dropped to $3.10 shortly after the transactions. Critics labeled the move a “dump” on retail investors, with social media users lambasting Larsen as a “chad” for allegedly profiting at the expense of his followers. ZachXBT, a prominent blockchain analyst, highlighted the transfers to exchanges as evidence of Larsen’s intent to liquidate assets, despite his public advocacy for XRP’s utility over speculation [1].

Larsen’s remaining holdings further fuel the debate. He still controls 2.81 billion XRP, valued at $8.4 billion, representing nearly 5% of XRP’s total market capitalization. Analysts note that such a concentrated position could exert downward pressure if liquidated, raising concerns about market manipulation or erosion of trust in XRP’s long-term value. While Ripple has defended its practice of releasing tokens to exchanges to enhance liquidity, the direct involvement of a co-founder in large-scale transfers has drawn accusations of hypocrisy, particularly given Ripple’s legal battles with the U.S. Securities and Exchange Commission (SEC) over XRP’s classification as a security [1].

The transaction also underscores broader tensions in crypto governance. While transferring tokens to exchanges is a common practice, the lack of transparency and the timing near a record high have amplified perceptions of unfair advantage. Some users, however, have offered alternative interpretations, such as decentralizing Larsen’s holdings to promote network fairness. Yet, these arguments have struggled to counter the dominant narrative of exploitation, with critics arguing that such actions prioritize personal gain over community interests [1].

Despite the backlash, the market’s immediate response was muted, as XRP continued its upward trend post-transaction. However, sentiment on social media and forums remains polarized, with calls for stricter regulations on insider trading and token management by project founders. Ripple has yet to issue a public statement on Larsen’s specific activity, leaving room for speculation about its stance on the controversy. The incident highlights the delicate balance crypto projects must strike between legal compliance, market dynamics, and community trust—especially during periods of heightened regulatory and market volatility.

Source: [1] [Ripple’s Chris Larsen Sparks Backlash For Sending $140 Million In XRP To Exchanges Near All-Time Highs] [https://zycrypto.com/ripples-chris-larsen-sparks-backlash-for-sending-140-million-in-xrp-to-exchanges-near-all-time-highs/]