XRP News Today: XRP Dives Over 11% After Larsen Transfers $140M to Exchanges Sparks Centralization Fears

Ripple co-founder Chris Larsen’s transfer of $140 million in XRP to exchanges on July 17, 2025, triggered a sharp price correction, exacerbating concerns over the centralized control of the token’s supply. Blockchain analytics firm CryptoQuant confirmed a significant outflow of 50 million XRP from Larsen-linked wallets, with a large portion directed to centralized exchanges and off-ramp services. This movement coincided with a more than 11% drop in XRP’s price, which had reached an all-time high of $3.65 earlier that day [1].

The transaction underscores ongoing debates about insider influence in the crypto market. On-chain data reveals Larsen still controls over 2.81 billion XRP, valued at approximately $8.4 billion at current prices, raising concerns about potential future volatility if large-scale sales occur [2]. Analysts have pointed to historical patterns where founder wallet outflows have historically aligned with price peaks, as seen during the 2017–2018 bull run [3].

A newly surfaced 2012 agreement between Larsen, Jed McCaleb, and Arthur Britto further highlights the centralized nature of XRP’s early distribution. The document confirms Britto was allocated 2% of all XRP (then called “Ripple Credits”) and granted independent development rights on the Ripple protocol [4]. This revelation has intensified scrutiny over Ripple’s governance and long-term supply management policies.

The timing of Larsen’s transaction has drawn comparisons to the 2018 XRP price peak, where major outflows from founder wallets preceded a market correction. While XRP has maintained technical support near $3 and remains among top-performing large-cap cryptocurrencies this quarter, traders remain cautious. The token’s price has yet to break above the $3.40–$3.50 resistance zone, a threshold critical for confirming a sustained rebound [5].

Market participants are advised to monitor founder wallet activity closely, as future sales—particularly through over-the-counter or institutional channels—could mitigate immediate price shocks. The structural overhang posed by Larsen’s remaining holdings, however, continues to weigh on investor sentiment.

Source: [1] [XRP Price Drops After Chris Larsen Transfers $140M to Exchanges, Raising Centralization Concerns] [https://en.coinotag.com/xrp-price-drops-after-chris-larsen-transfers-140m-to-exchanges-raising-centralization-concerns/]

[2] [XRP Price Drops After Chris Larsen Transfers $140M to Exchanges, Raising Centralization Concerns] [https://en.coinotag.com/xrp-price-drops-after-chris-larsen-transfers-140m-to-exchanges-raising-centralization-concerns/]

[3] [XRP Price Drops After Chris Larsen Transfers $140M to Exchanges, Raising Centralization Concerns] [https://en.coinotag.com/xrp-price-drops-after-chris-larsen-transfers-140m-to-exchanges-raising-centralization-concerns/]

[4] [XRP Price Drops After Chris Larsen Transfers $140M to Exchanges, Raising Centralization Concerns] [https://en.coinotag.com/xrp-price-drops-after-chris-larsen-transfers-140m-to-exchanges-raising-centralization-concerns/]

[5] [XRP Price Drops After Chris Larsen Transfers $140M to Exchanges, Raising Centralization Concerns] [https://en.coinotag.com/xrp-price-drops-after-chris-larsen-transfers-140m-to-exchanges-raising-centralization-concerns/]