XRP News Today: Ripple Co-Founder Sells $175M XRP as Token Drops 10%-17%

Chris Larsen, co-founder of Ripple, has drawn attention for offloading approximately $200 million worth of XRP tokens in July 2025, sparking debates about market integrity and investor trust. On-chain data reveals that between July 17 and July 23, Larsen’s address transferred 50 million XRP—valued at $175 million—to four addresses, with $140 million of these tokens ultimately reaching exchanges [2]. This large-scale transaction occurred amid a 10% to 17% drop in XRP’s price during the same period, marking its steepest decline since April 2025 [3]. Market watchers, including analyst J.A. Maartun, have highlighted concerns that such sales act as “exit liquidity” for retail investors, potentially exacerbating downward price pressures as insider activity influences market dynamics [5].

Critics argue that Larsen’s actions, rooted in his early allocation of 2.8 billion XRP from Ripple’s 2012 pre-mine, underscore a lack of long-term commitment to the token’s ecosystem [1]. The timing of the sale has intensified scrutiny over the influence of major token holders on price stability, with some suggesting that large trades by influential stakeholders can erode investor confidence and affect market depth. Additionally, comparisons to other high-profile asset sales by executives, such as Meta’s Mark Zuckerberg, have been raised to contextualize Larsen’s move as a common practice among founders [4].

Despite these concerns, XRP advocates have defended the sale as a strategic move to enhance liquidity. By circulating more XRP at lower prices, early holders like Larsen could facilitate broader adoption, making the asset more accessible to new investors. Crypto Bitlord, a market commentator, framed the transaction as a “favor” rather than a betrayal, emphasizing that increased liquidity aligns with long-term value creation [4]. This perspective is reinforced by XRP’s recent resilience, as the token reached an all-time high in July despite the sale, suggesting strong underlying market confidence [2].

The transaction also highlights broader challenges in the cryptocurrency sector, where institutional activity and retail investor behavior intersect to shape price trajectories. While $140 million of Larsen’s transferred XRP has entered exchanges, the exact intent—whether for trading or strategic allocation—remains speculative. Analysts caution against misinterpreting such movements in isolation, urging investors to consider broader factors like regulatory updates and macroeconomic trends to contextualize short-term volatility [6].

As Ripple continues to position XRP as a bridge currency for cross-border transactions, the balance between liquidity events and organic adoption will remain critical. Investors are advised to monitor regulatory developments and network advancements, which could either mitigate or amplify the effects of large-scale sales by key figures. For now, the market remains divided, with critics viewing the transaction as a cautionary signal and supporters framing it as a necessary step toward sustainable growth.

Sources:

[1] [Ripple Co-Founder Chris Larsen Moves $175M XRP] (https://coinpedia.org/news/ripple-co-founder-chris-larsen-moves-175m-xrp-whats-happening/)

[2] [XRP Price Falls 10% Amid $140M Transfers] (https://coincentral.com/xrp-price-falls-10-amid-140m-transfers-linked-to-ripple-co-founder/)

[3] [Dow Jones Declines, Tesla Stock Plummets Post Earnings] (https://m.economictimes.com/crypto-news-today-live-24-jul-2025/liveblog/12286556.cms)

[4] [Ripple Co-Founder Moves $175M in XRP in a Week Amid Scam Surge Warnings] (https://cryptoslate.com/ripple-co-founder-moves-175m-in-xrp-in-a-week-amid-scam-surge-warnings/)

[5] [XRP Drops 17% as $175 Million Whale Activity Rattles Market] (https://invezz.com/news/stocks/)

[6] [Ripple-Backed XRP Remains a Major Player in Cross-Border Transactions] (https://coindcx.com/blog/crypto-highlights/top-10-cryptos-2025/)