PanAsiaBiz Editorial | July 26, 2025 – Ripple co-founder Chris Larsen has come under scrutiny after reportedly selling $200 million worth of XRP over a ten-day period, triggering mixed reactions across the crypto community.
The sale was first flagged by market analyst Maartunn (@JA_Maartun), who shared wallet data showing a sharp decline in Larsen’s XRP holdings.
Critics argue the move could signal waning confidence in the asset, with some suggesting retail investors are being used as “exit liquidity” for early insiders.
“Still buying? You’re the exit liquidity. He’s dumping on you,” Maartunn posted on X, referencing the timing of the sale amid XRP’s recent price surge.
Ripple Leadership Under the Microscope
Larsen, who received a substantial allocation of XRP at the project’s inception, has faced similar criticism in the past, according to the Times Tabloid.
While other Ripple executives like David Schwartz acquired their tokens independently, Larsen’s large-scale offload has reignited concerns about the long-term commitment of Ripple’s leadership.
Despite the controversy, XRP reached a new all-time high this month, suggesting broader market confidence remains intact.
XRP Army Pushes Back
Supporters argue the sale enhances liquidity and accessibility. Influencer Crypto Bitlord framed the move as a positive for new investors, saying lower prices allow wider distribution of the asset.
Others compared the transaction to stock sales by tech founders like Mark Zuckerberg, noting that such moves are common and don’t necessarily reflect loss of faith.
“XRP’s market presence now exceeds any single individual,” one community member posted. “Larsen’s sale is noise, not signal.”
Market Impact and Outlook
While short-term volatility is expected, analysts caution against overreacting. The XRP ecosystem continues to expand, with recent integrations like MetaMask support for XRPL and rising institutional interest in cross-border payments.
As Ripple navigates ongoing legal challenges with the SEC, founder activity remains a sensitive topic — but the token’s resilience suggests the community isn’t rattled just yet.
