Ripple Co-Founder Sold $140M in XRP After It Hit Price Peak

The rally in XRP’s price ended as swiftly as it began. The price rose 11% on July 17 to $3.65, sparking fresh attention on Ripple’s network. Around then, it was reported that Chris Larsen, Ripple’s co-founder, transferred 50 million XRP, partly to centralized exchanges. Many believe this transfer may have played a part in the quick price correction, prompting questions about what happens inside during market ups and downs.

Founder Wallet Activity Raised Red Flags

Blockchain investigator ZachXBT was the first to track Larsen’s transfers, identifying nearly $140 million worth of XRP flowing from known co-founder wallets to off-ramp services. The timing couldn’t have been more precise. According to CryptoQuant, Larsen’s wallet activity spiked exactly as XRP hit its local top on July 17. The wallet’s balance, which had remained mostly static for weeks, suddenly began to drop, mirroring XRP’s slide to $3.25.

The charted data paints a familiar pattern. As soon as large amounts of XRP left the wallet, volatility picked up. In just a few days, XRP lost more than 11%, reflecting the pattern of sell-offs seen during the 2017–2018 bull market after comparable wallet activity. Back then, outflows connected to the founder regularly matched market peaks, which led many to wonder if insider selling was holding back the market’s progress.

These aren’t just technicalities; they speak to the structural risks still baked into XRP’s ecosystem. Large, concentrated holdings in the hands of early insiders create an overhang—one that can trigger market swings simply through wallet activity. In Larsen’s case, his known wallets still hold over 2.8 billion XRP, valued at more than $8.4 billion. That’s not just liquidity, it’s leverage.

Old Ripple Document Sparks New Concerns

A 2012 agreement between Ripple’s original founders has recently come back into view, showing how XRP was shared at the start. The document was posted online and confirmed by XRP community members. It explains how Chris Larsen, Jed McCaleb, and Arthur Britto divided the tokens, which were called “Ripple Credits” at that time. Britto was allocated 2% of the total supply and granted perpetual rights to build on the Ripple protocol independently of Ripple Labs.

Although the contents of the agreement are not new, they underscore a recurring criticism: the centralized nature of XRP’s distribution. That concentration of control has long attracted regulatory attention, particularly in the context of Ripple’s legal challenges with the SEC over whether XRP qualifies as a security. As of now, nearly 45% of the total supply remains under the control of Ripple Labs, its founders, or affiliated wallets.

While early centralization was not uncommon among blockchain projects, XRP’s situation is distinct in its longevity. The recent sell-off demonstrated that movements from insider wallets can still trigger significant shifts in market perception.

Price Action Reflects a Fragile Recovery

Despite the sell pressure, XRP hasn't collapsed and now trades near $3.07. Technical indicators point to solid support around the $3 mark, and traders are watching for a breakout above the $3.40–$3.50 range as a sign of regained strength.

Still, caution is evident. The correlation between insider movements and price drops has made the market more sensitive. Even when fundamentals remain unchanged, wallet activity can act as a proxy for future price action—especially among institutional traders who rely on on-chain data feeds.

Comparisons to the 2018 market cycle have started to re-emerge. That period also featured significant founder sell-offs during moments of peak public interest. Despite this, XRP remained resilient, ultimately becoming one of the most heavily traded altcoins and forming strong partnerships in the remittance and cross-border payments sectors, particularly across Asia and the Middle East.

A potential difference this time lies in how such sales are managed. Should Larsen or other early stakeholders choose to route large transactions through OTC desks or institutional agreements, the direct impact on market prices could be softened. However, transparency will remain crucial. Even unconfirmed reports of major sales can affect sentiment, regardless of their accuracy.

What Does It All Mean?

The recent XRP sell-off linked to Chris Larsen’s wallet activity has reignited long-standing concerns about insider influence and centralization within the Ripple ecosystem. While the market has shown some resilience, the sharp timing of the transfers around the token’s peak has made investors more cautious and more attentive to on-chain behavior.

As XRP works to regain stability, attention is expected to stay on wallets connected to its founder and the way future sales are managed. Improving transparency and ensuring careful handling of major holdings could help support market confidence and strengthen the token’s long-term prospects.