A significant movement of XRP, Ripple native cryptocurrency, by co-founder Chris Larsen has sent ripples through the crypto community, sparking accusations of “dumping” tokens at a critical market juncture. The transactions, totaling approximately $175,000,000 in XRP, occurred just as the digital asset was reaching a local price peak.
Blockchain analytics firm ZachXBT was quick to flag the large transfers, which took place between July 17 and Wednesday. According to their findings, a substantial portion — around $140,000,000 worth of XRP — was channeled to centralized exchanges or services. In the crypto world, moving large sums to exchanges is typically interpreted as an intention to sell, which can exert downward pressure on prices.
The timing of Larsen’s move has drawn considerable criticism. XRP had briefly surged above $3,60 before retracting to around $3,10. This proximity to the local high led some market participants to accuse Larsen of offloading his holdings to capitalize on the elevated price, thereby potentially contributing to the subsequent price dip. Social media was abuzz with mixed reactions, with some users expressing frustration over what they perceived as a recurring pattern of insider sell-offs. Conversely, a few voices argued that such large transfers could be part of a broader strategy to decentralize holdings among long-term investors, aiming to ensure a more equitable distribution of the network’s supply.
Despite these recent transfers, ZachXBT highlighted that wallets associated with Chris Larsen still hold an astounding 2,810,000,000 XRP, valued at approximately $8,400,000,000. To put this in perspective, these holdings account for roughly 4,6% of XRP’s total market capitalization, which currently stands at $183,000,000,000. Such a substantial concentration raises concerns about potential sell pressure if a large portion were to be liquidated rapidly.
Looking ahead, the market remains watchful of XRP’s trajectory. While the asset has faced recent headwinds, some analysts believe it still holds the potential to challenge its 2018 all-time high of $3,84. Experts, like Lukas Enzersdorfer-Konrad, deputy CEO of Bitpanda, suggest that XRP’s future upside will largely depend on overall favorable market conditions and a continued shift of capital from Bitcoin into alternative cryptocurrencies. Unlike some assets driven by unique developments, XRP’s performance often appears to be more closely tied to broader market momentum.
