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Ripple co-founder Chris Larsen’s recent transfer of $140 million in XRP to exchanges has sparked a significant price correction, highlighting ongoing concerns about insider influence in the crypto market.
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On-chain data reveals a substantial outflow from Larsen-linked wallets, with over 2.81 billion XRP still under his control, underscoring potential market supply risks.
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A leaked 2012 agreement detailing early XRP allocations further emphasizes the centralized distribution among founders, fueling debates on market transparency and decentralization.
Chris Larsen’s $140M XRP transfer triggered an 11% price drop, spotlighting founder wallet activity and centralized supply concerns in Ripple’s market dynamics.
On-Chain Data Links Chris Larsen’s XRP Transfers to Sharp Price Decline
On July 17, 2025, XRP reached an all-time high of $3.65 before experiencing a rapid decline exceeding 11%. This downturn closely followed a significant transaction by Ripple co-founder Chris Larsen, who moved 50 million XRP—valued at approximately $140 million—to multiple addresses, with a large portion directed to centralized exchanges and off-ramp services. Blockchain analytics firm CryptoQuant confirmed this spike in wallet activity, noting a marked decrease in Larsen’s cumulative XRP balance during this period.
The correlation between these transfers and XRP’s price movement suggests a deliberate profit-taking strategy by an insider, which has historically influenced market volatility. This pattern mirrors similar behaviors observed during the 2017–2018 bull run, where founder wallet outflows coincided with price peaks, reinforcing concerns about the impact of concentrated holdings on token price stability.
Market Implications of Founder-Controlled XRP Supply
Despite the recent sell-off, Larsen-linked wallets still control over 2.81 billion XRP, valued at roughly $8.4 billion at current market prices. This substantial supply concentration creates a structural overhang, posing potential risks to price stability if further large-scale sales occur on open markets. Traders and analysts are closely monitoring these wallet activities, as future movements could trigger renewed volatility or price suppression.
However, the market has demonstrated resilience, with XRP maintaining strong performance among large-cap cryptocurrencies this quarter. Technical indicators suggest robust support near the $3 mark, with traders anticipating a possible rebound beyond the $3.40–$3.50 resistance zone. Nevertheless, the visible influence of founder transactions continues to temper market sentiment, emphasizing the need for greater transparency and responsible asset management.
Leaked 2012 Agreement Sheds Light on XRP’s Centralized Origins
A recently surfaced 2012 agreement between Ripple founders Chris Larsen, Jed McCaleb, and Arthur Britto has reignited discussions about XRP’s initial token distribution. The document confirms that Britto was allocated 2% of all XRP—then referred to as Ripple Credits—and granted lifetime rights to develop on the Ripple protocol independently of company approval. This historical context highlights the centralized nature of XRP’s early supply and the significant control retained by founding members.
🚨 HISTORICAL DOCUMENT LEAKED 🚨
Signed on Sept 17, 2012, this agreement between Chris Larsen, Jed McCaleb, and Arthur Britto confirms that Britto received 2% of ALL XRP (then called “Ripple Credits”) and more importantly, it gave him lifetime rights to build on the Ripple… pic.twitter.com/lyZfZNJqPw
— Echo 𝕏 (@echodatruth) June 3, 2025
This revelation reinforces ongoing concerns regarding the concentration of XRP supply among early insiders and the implications for market decentralization. It also raises questions about the long-term governance and distribution policies Ripple employs to manage these founder-held assets.
Historical Parallels: Insider Sales and Market Dynamics
The timing and scale of Chris Larsen’s recent XRP transfers draw notable parallels to market behavior observed during the 2018 XRP price peak. On-chain data indicates that major outflows from Larsen’s wallets coincided with that historic top, suggesting a recurring pattern of insider-driven market influence. Such activity has historically contributed to price corrections, fueling skepticism among investors about the fairness and transparency of token distribution.
Despite these concerns, the XRP market continues to exhibit resilience. The recent dip has been met with strong technical support, and the token remains among the top performers in the crypto space this quarter. Market participants are advised to monitor founder wallet activity closely, as future sales—especially if routed through over-the-counter (OTC) or institutional desks—could mitigate immediate price shocks.
Conclusion
Chris Larsen’s $140 million XRP transfer shortly after the token’s all-time high underscores the significant influence founders wield over Ripple’s market dynamics. The substantial supply still controlled by Larsen-linked wallets presents ongoing risks of price volatility, particularly if further large-scale sales occur. Historical data and leaked agreements highlight the centralized origins of XRP’s distribution, reinforcing calls for increased transparency and responsible asset management. While XRP has shown resilience amid recent sell-offs, market participants should remain vigilant of insider activity as a key factor shaping future price movements.
