Between July 17 and Wednesday, a wallet linked to Ripple co-founder Chris Larsen moved 50M XRP. This transfer, worth around $175 million, sparked criticism in the crypto community as XRP's price fell.
ZachXBT, a blockchain investigator, noticed the transfers, stating that approximately $140 million of the XRP was routed to a CEX. Transferring to a centralized exchange is a sign that many believe shows a plan to cash out.
Larsen's wallets are said to still hold around 2.81 billion XRP, worth approximately $8.4B —or 4.6% of XRP's market cap. Some traders expressed fear that such huge holdings would create strong sell pressure if liquidated rapidly. The timing was also criticized, since the transfers corresponded with XRP's local high above $3.60 before prices fell below $3.10, prompting charges of "dumping" in the market.
The community's reactions were mixed. Some have accused Larsen of serial insider selloffs, calling Ripple's market dominance into question. Others suggested that giving XRP to new holders helps to decentralize the token supply.
Despite the recent price dip, Bitpanda's deputy CEO believes XRP can still break its 2018 high if the general altcoin market momentum improves. According to industry observers, XRP's future performance will continue to be heavily influenced by broader market movements.
