XRP investors face new warnings over becoming exit liquidity after Ripple co-founder Chris Larsen offloaded XRP tokens valued at an estimated $120 million.
Massive transfers tied to early Ripple insiders often catch traders’ attention because of the concentration of supply. Larsen’s latest transaction comes as the XRP price has been under significant pressure recently.
Larsen’s XRP Transaction: What Next?
Chris Larsen appears to have resumed — or be preparing to resume — XRP sales, according to on-chain activity observed on Monday. Larsen, who serves as executive chairman of Ripple, dumped approximately 50 million XRP tokens within the span of an hour, sparking fears of a precipitous price drop.
In a post on X, J. A. Maartunn, a contributor to the on-chain analytics platform CryptoQuant, told XRP holders:
“Still buying the hype? He’s cashing out. You’re holding the bag.”
XRP, the fifth-biggest cryptocurrency by market cap, was recently trading for $2.43, roughly 33.3% below its July 2025 all-time high mark of $3.65, according to data from crypto data provider CoinGecko.
Just before XRP ripped to the current record peak, Larsen had sent approximately $26 million worth of the token to America’s leading crypto exchange, Coinbase.
Larsen helped create XRP to help banks and other financial institutions move money across borders and served as Ripple CEO until 2016. He holds an estimated 2.6 billion XRP worth more than $8.5 billion at current prices. Forbes last estimated Larsen’s net worth at $10.6 billion.
Real Motive Behind Larsen’s $120M XRP Transfer
Ripple has been on an explosive trajectory since scoring major wins in its protracted legal battle with the U.S. Securities and Exchange Commission (SEC). The lawsuit officially ended in August when both sides dropped their appeals, concluding years of litigation and removing regulatory uncertainty.
As ZyCrypto reported earlier, Ripple is getting behind a new publicly traded XRP treasury firm called Evernorth, which aims to raise $1 billion to accumulate the token. Notably, Larsen announced a 50 million XRP contribution toward the initiative. This suggests that the outbound transfer was related to his investment in Evernorth rather than a sell-off.
Larsen, alongside other Ripple execs, has been in the spotlight for selling XRP. In its lawsuit, the agency had accused CEO Brad Garlinghouse of personally selling roughly $150 million between 2017 and 2020 and Larsen and his spouse of dumping $450 million during the same period.
Source: https://zycrypto.com/ripple-co-founder-offloads-120-million-worth-of-xrp-amid-market-chaos-time-to-panic-or-buy-dip/
