Ripple Co-Founder Sparks XRP Dump Fears with $175M Transfer
Ripple co-founder Chris Larsen moved 50 million XRP (around $175 million) to centralized exchanges as XRP approached a local high of $3.60, prompting allegations of an XRP dump. On-chain analytics showed roughly $140 million of the tokens routed to trading platforms, while Larsen still holds over 2.81 billion XRP—about 4.6% of the total market cap. Critics warn that such large transfers near peak prices typically signal sell-offs and could exert downward pressure on XRP’s price, which is trading around $3.10. Defenders argue the move aims to decentralize holdings among long-term investors. No official response has been issued by Ripple. Market analysts note that, despite the pullback, XRP could still test its 2018 all-time high of $3.84 if broader crypto momentum remains strong.
Bearish
We assess a bearish impact because large on-chain transfers of XRP to centralized exchanges near a price peak typically precede sell-offs and increase market supply, amplifying downward pressure. The timing of this $175 million XRP dump—just as XRP hit a local high—may trigger swift sell orders from traders anticipating insider offloading. Historically, similar insider movements, such as Ethereum foundation token withdrawals before the 2018 peak, led to sharp short-term price drops. In the near term, this news could heighten volatility and push XRP below key supports around $3.00. Longer term, the market may stabilize if demand rebounds and network fundamentals hold, but immediate sentiment is likely dampened.