XRP News Today: XRP Plummets 20% as $140M Co-Founder Sale Triggers $7.3M Liquidations on Binance

XRP long positions on Binance faced significant liquidations following a $140 million XRP sale attributed to Ripple co-founder Chris Larsen in July 2025. The transaction triggered a sharp price correction, with XRP dropping from $3.65 to $2.95 within a single day [1]. Over $7.3 million in leveraged longs were wiped out during the July 23 sell-off, marking the largest liquidation event for XRP on Binance that year [2]. Open interest in XRP futures contracts plummeted by 16.8%, reflecting traders’ rapid repositioning amid heightened volatility [3].

The sale, which involved over 50 million XRP tokens, intensified market concerns about "whale dumping" and governance risks associated with pre-mined cryptocurrencies. Historical patterns showed similar large-scale sales often led to short-term price instability, as seen in a prior $105 million liquidation event on July 9 [4]. Analysts noted that Larsen’s actions created a self-reinforcing cycle: selling pressure drove leveraged traders to close positions, which in turn exacerbated price declines. The lack of an official explanation for the transactions left room for speculation about strategic motives, though the timing—following a brief price rebound above $3—highlighted the fragility of market confidence [5].

The ripple effects extended beyond XRP. Bitcoin also experienced a selloff as traders recalibrated risk exposure, with $140 million in BTC longs liquidated after prices fell below $115,000 [6]. The interconnectedness of crypto markets underscored the systemic risks posed by concentrated ownership structures. XRP’s 14% weekly decline reinforced concerns about the vulnerability of leveraged positions in an environment already pressured by ETF-related uncertainties [5].

The incident reignited debates about transparency in large token movements and the potential for market manipulation. While no immediate regulatory interventions were reported, the event served as a cautionary tale for traders relying on leverage in volatile markets. Analysts emphasized that while Larsen’s sales contributed to short-term turbulence, XRP’s long-term trajectory remains subject to broader macroeconomic factors and regulatory developments. The episode highlighted the need for clearer governance frameworks in assets with centralized ownership dynamics [1].

Source:

[1] AInvest, [https://www.ainvest.com/news/xrp-news-today-xrp-drops-10-140m-sell-triggers-7-3m-liquidations-binance-2507/]

[2] AInvest, [https://www.ainvest.com/news/xrp-news-today-ripple-founder-sells-140m-xrp-price-falls-10-july-2025-2507/]

[3] CoinCentral, [https://coincentral.com/xrp-price-falls-10-amid-140m-transfers-linked-to-ripple-co-founder/]

[4] Crypto, [https://cryptoadventure.com/xrp-volatility-spikes-with-105m-in-longs-liquidated-amid-etf-jitters/]

[5] Crypto, [https://cryptoadventure.com/xrp-drops-14-after-175m-moved-to-exchange-by-ripple-co-founders-wallet/]

[6] CoinCentral, [https://coincentral.com/xrp-price-falls-goldenmining-contracts-earn-5700-in-stable-returns/]