Ripple co-founder Chris Larsen has made headlines following significant XRP transfers totaling 50 million XRP (roughly $175 million) from a wallet linked to him since July 17, 2025. Out of these, around $140 million worth of XRP ended up on exchanges, stoking speculation that he may be offloading his holdings.
📈 Massive Transfers Raise Eyebrows
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On July 17, the wallet initiated a transfer of 9.5 million XRP (more than $26 million) to Coinbase, coinciding with a sharp rally in XRP prices.
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Subsequent movements totaling 50 million XRP suggest a deliberate strategy—whether it’s profit-taking or risk mitigation remains unclear.
🚀 XRP Hits All-Time High
Following these transfers, XRP surged to an all-time high of $3.60 on July 18, pushing its market cap to $215 billion. This temporarily positioned XRP above giants like McDonald’s and American Express in terms of market capitalization, becoming the third-largest cryptocurrency behind Bitcoin and Ethereum. However, this peak was short-lived.
🔐 Past Security Breach Still Haunting
This move echoes a major hack from January 2024, when Larsen lost $112 million worth of XRP due to a LastPass breach—most of which was dispersed across multiple exchanges. That same wallet, inactive for six years, also moved $109 million worth of XRP in January 2025, raising questions about whether Larsen still controls it.
🔍 Interpretations: Sell-Off or Risk Management?
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Profit-Taking? Some believe Larsens may be cashing in after XRP’s spike. The timing—moves right after the price soared—adds weight to this theory.
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Risk-Off Strategy? Alternatively, it could be a measure to rebalance or secure liquidity amid volatile market conditions.
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Market Impact: A sale of this magnitude could potentially trigger downward pressure on XRP prices unless spread over time.
⚠️ Community Tension & Price Volatility
The XRP community, or “XRP Army”, experienced mixed emotions. While many celebrated the record price, others were apprehensive about how large transfers might impact future performance. Dramatic price swings have already triggered hundreds of millions in liquidations—long positions have taken the hardest hit.
🧩 Context from XRP’s Supply Schedule
Ripple’s escrow system releases 1 billion XRP monthly in two tranches of 500 million XRP each. Only a portion is circulated into the market for operational needs or ecosystem incentives, while the rest is returned to escrow. Critics often view these releases as dumping, but Ripple and advocates argue this transparency helps stabilize supply and foster investor trust.
💬 Community Voices
Echoing these sentiments, Bill Morgan—a former SEC official—validated that the escrow process is structured to support, not suppress, XRP prices. He emphasized that even the SEC acknowledged the escrow mechanism aimed to bolster market confidence.
🎯 Key Questions Moving Forward
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Is Larsen offloading XRP to cash in at peak levels, or simply reallocating risk?
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Will these transfers trigger a price drop or liquidity crunch?
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How will the community and regulators respond to such sizable wallet movements?
📝 Summary
Chris Larsen’s recent activity—transferring 50 million XRP worth about $175 million and channeling $140 million into exchanges—is significant. It could represent profit-taking, risk management, or a combination of both. The backdrop of XRP’s latest all-time high and ongoing market volatility adds layers of uncertainty. Meanwhile, Ripple’s escrow model continues to shape perceptions of supply dynamics. Whether this signals a broader sell-off, or simply reflects strategic planning, remains to be seen.
✍️ Conclusion
While it’s still early to determine if this marks a major sell-off or prudent financial move, investors should monitor trading volumes, exchange inflows, and broader market responses in the coming days.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Investors are responsible for their own decisions.
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