XRP News Today: Ripple Co-Founder Transfers $140M XRP to Exchanges Sparks 10% Price Drop

Chris Larsen, co-founder of Ripple, transferred approximately $140 million worth of XRP to trading platforms over a seven-day period in mid-July 2025, triggering discussions about potential market manipulation and centralization risks. The bulk of the $175 million in total transfers, specifically $140 million, was directed to exchanges or liquidity services between July 17 and July 24, according to blockchain tracking reports [1][3][5]. This movement coincided with a sharp 8–12% decline in XRP’s price, which fell to $2.95–$2.99 during the same period [2][7]. Analysts noted the pattern as a potential precursor to selling activity, though no immediate sales were confirmed [2][4][6].

Larsen’s associated wallets still hold over 2.81 billion XRP, valued at roughly $8.4 billion, or nearly 5% of XRP’s $183 billion market cap [4][8]. Critics argue this concentration of tokens raises concerns about liquidity risks and perceptions of unfair advantage. Blockchain analyst ZachXBT highlighted the transfers as a “signal of intent to liquidate,” though no direct evidence of sales was provided [3][5]. The timing of the transactions intensified scrutiny, as they followed a broader trend of pre-sale tokens being rapidly offloaded in other projects, such as BitMEX’s PUMP token [9].

The event has reignited debates about token distribution models in high-profile crypto projects. Social media users questioned how Ripple maintains its reputation as a top-tier asset despite repeated accusations of “insider dumping” during bullish cycles [4]. The SEC’s ongoing legal case against Ripple adds another layer of uncertainty, as regulatory outcomes could influence how such transactions are interpreted. While large holders like Larsen are not legally barred from selling tokens, the concentration of XRP in a small number of wallets remains a focal point for skeptics.

The market reaction underscores the fragile balance between token utility and investor confidence in decentralized ecosystems. Critics argue that such large-scale transfers, even if compliant with regulations, erode trust by amplifying fears of coordinated sell-offs. Proponents, however, emphasize that XRP’s utility in cross-border payments and Ripple’s partnerships mitigate some of these concerns. The situation highlights the broader challenge of aligning decentralized governance with the realities of market psychology.

The controversy also reflects the tension between transparency and privacy in blockchain ecosystems. While blockchain analytics firms can track large transfers, they cannot definitively determine whether tokens will be sold or held. This ambiguity fuels speculation, particularly in volatile markets. The SEC’s legal battle, which hinges on whether XRP qualifies as a security, could reshape how such transactions are framed in the future.

[1] Cointelegraph. "XRP dump: Ripple co-founder under fire for moving $175M..." https://cointelegraph.com/news/xrp-dump-ripple-co-founder-under-fire-for-moving-175m-xrp-near-highs

[2] AInvest. "Ripple Co-Founder Transfers $140M XRP to Exchanges as..." https://www.ainvest.com/news/xrp-news-today-ripple-founder-transfers-140m-xrp-exchanges-token-drops-8-2507/

[3] BitDegree. "Ripple Co-Founder Sparks XRP Panic With $175M Transfer" https://www.bitdegree.org/crypto/news/ripple-co-founder-sparks-xrp-panic-with-175-million-transfer

[4] Cointribune. "Chris Larsen Under Pressure After A Massive Transfer Of..." https://www.cointribune.com/en/chris-larsen-under-pressure-after-a-massive-transfer-of-xrp-is-it-disguised-dumping/

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

[6] Mitrade. "Ripple co-founder faces dumping accusation XRP transfers..." https://www.mitrade.com/insights/news/live-news/article-3-984676-20250724

[7] AInvest. "XRP News Today: Ripple Co-Founder Transfers $175M..." https://www.ainvest.com/news/xrp-news-today-ripple-founder-transfers-175m-xrp-token-dumps-12-24-hours-2507/

[8] Thecryptobasic. "Ripple Founder Continues to Dump XRP as Price Dips to..." https://thecryptobasic.com/2025/07/24/ripple-founder-continues-to-dump-xrp-as-price-dips-to-2-95/

[9] BitDegree. "Ripple Co-Founder Sparks XRP Panic With $175M Transfer" https://www.bitdegree.org/crypto/news/ripple-co-founder-sparks-xrp-panic-with-175-million-transfer