XRP Investors Raise Concerns as Ripple Co-Founder Moves 50 Million Tokens to Exchanges

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Ripple co-founder Chris Larsen’s recent transfer of 50 million XRP tokens to cryptocurrency exchanges has sparked investor worry over potential sell pressure. With Larsen still holding billions of XRP, analysts caution that further large sales could weigh heavily on the token’s price amid an already volatile market environment.

XRP (Ripple’s digital currency token) faced fresh scrutiny after a wallet tied to Chris Larsen, Ripple Labs’ co-founder and Executive Chairman, moved 50 million XRP to exchanges. Valued at more than $150 million at the time, this transfer immediately raised alarms across the investor community, with fears that it could mark the start of larger sell-offs.

Larsen still controls approximately 2.58 billion XRP, valued at nearly $8.8 billion, according to data from on-chain analytics provider CryptoQuant. This vast holding means the recent 50 million XRP outflow represents only a small portion of his total reserves, prompting warnings from analysts like J.A. Maartunn, who advised investors on X (formerly Twitter) not to be “dumped on” and to protect themselves from potential market drops.

“If $200 million was just the warm-up… what’s next?” Maartunn questioned, highlighting the risk that further distributions from Larsen’s wallet could add downward pressure on XRP’s price. This warning comes as XRP’s value slid about 13% to roughly $3.18, falling from the $3.60 peak it reached just days earlier.

The decline unfolded amid broader market turbulence, including a notable movement of 80,000 Bitcoin (BTC) from a wallet dormant since the early days of the cryptocurrency. Managed by Galaxy Digital, this transaction triggered over $500 million in liquidations across the crypto market within 24 hours, intensifying the overall volatility and investor unease.

Meanwhile, XRP’s futures market saw record-breaking activity. Perpetual futures contracts reached an all-time high in notional open interest of $8.8 billion, representing almost 2.9 billion XRP in leveraged positions. Positive and climbing funding rates across exchanges signaled strong bullish sentiment, yet the presence of insider token sales adds complexity to this outlook.

Adding to the mix is the increase in “whale wallets” holding at least 1 million XRP, which now collectively control over 47 billion tokens. While this may indicate growing institutional interest, it also raises concerns about concentrated token control.

In regulatory news, Ripple CEO Brad Garlinghouse announced plans to withdraw the company’s cross-appeal against the U.S. Securities and Exchange Commission (SEC), with the SEC expected to drop its appeal. While this move may clear legal uncertainties, it hasn’t quelled investor worries over insider sales and the long-term stability of XRP.

With billions of tokens still under Larsen’s control, investors are closely watching for further movements that could impact XRP’s price trajectory and market sentiment.