XRP Price Plunge: Alarming $175M Transfer by Ripple Co-Founder Chris Larsen Ignites Market Fears

The cryptocurrency world is no stranger to volatility, but recent events surrounding XRP have sent ripples of concern through the market. A significant **XRP Price** drop, seeing the token tumble by as much as 12% in a single day, has ignited widespread discussion and scrutiny. At the heart of this downturn lies a massive $175 million transfer of XRP tokens by none other than Ripple co-founder **Chris Larsen**, fueling accusations of a deliberate ‘Token Dump’ and sparking fear among retail investors.

The Alarming **XRP Price** Drop and Insider Actions

On July 17, 2025, the cryptocurrency community was abuzz with news of a substantial movement of XRP tokens. Reports confirmed that 50 million XRP, valued at approximately $175 million at the time, were transferred from an address linked to Chris Larsen to four undisclosed wallets. This activity coincided directly with a sharp decline in XRP’s value, which saw the token lose up to 12% of its value within a 24-hour period. While broader market corrections were also at play, many analysts and investors were quick to point fingers at Larsen’s actions, accusing him of orchestrating a ‘Token Dump’ to capitalize on short-term gains at the expense of everyday holders.

This incident was particularly jarring given that XRP had enjoyed a multi-day rally in the preceding weeks, positioning it as one of July’s top-performing cryptocurrencies. The timing of Larsen’s transfer, occurring when XRP was trading at a 10-12% discount from its recent peak, intensified suspicions. Critics argue that such a move by a prominent figure could be perceived as a deliberate strategy to manipulate the market, eroding investor confidence. Meanwhile, Ripple executives have issued warnings about phishing scams and fake airdrops, but these efforts did little to stabilize the **XRP Market** amid the controversy.

Unpacking the **Chris Larsen** Transfer Controversy

The controversy surrounding **Chris Larsen**’s large-scale XRP transfer goes beyond mere price movements; it touches upon fundamental issues of transparency and trust in the crypto space. While it’s true that Larsen’s actions alone might not account for the entire magnitude of the selloff, which was also influenced by broader crypto sector declines and persistent regulatory uncertainty, the timing of his transactions undeniably amplified skepticism. One report highlighted that the $175 million transfer coincided with the SEC’s delayed decisions on key legal matters related to Ripple, creating a narrative of instability that fueled panic selling.

Such large token movements by company founders frequently trigger panic selling in volatile crypto markets. This incident underscores the fragility of investor sentiment, where perceived conflicts of interest can rapidly shift asset values. Despite Larsen’s historical role in promoting XRP’s utility for cross-border payments, his recent actions have raised questions about his alignment with retail investors. Market participants are now eagerly awaiting further clarification from Ripple regarding the nature of these transfers. Some analysts speculate the move could be part of a broader liquidity management strategy rather than a direct profit-taking maneuver. However, in the absence of additional context, the narrative of a ‘Token Dump’ persists, leaving many questioning insider ethics.

The Ongoing **Ripple SEC Lawsuit** and Its Market Impact

Compounding the **XRP Price** downturn was the continued saga of the **Ripple SEC Lawsuit**. Investors had been anticipating a swift resolution, hoping it would bring much-needed clarity and stability to the **XRP Market**. However, on July 26, Judge Analisa Torres rejected the parties’ motion for an indicative ruling, stating that a settlement could proceed without revising the Final Judgment or the $125 million civil penalty. While Ripple CEO Brad Garlinghouse confirmed dropping their cross-appeal in the 2nd Circuit Court after the SEC agreed to resolve the case, no significant developments emerged for over a month.

This delay has left investors in a state of prolonged uncertainty, with many now anticipating a resolution in August or even later. Former SEC lawyer Marc Fagel noted that such settlements typically take 1–2 months for approval, with a public statement from the SEC potentially arriving within weeks. The protracted legal battle continues to cast a long shadow over XRP, making it susceptible to sudden price swings whenever new developments (or lack thereof) emerge. The market craves finality, and until the **Ripple SEC Lawsuit** is definitively settled, XRP will likely remain highly sensitive to regulatory news.

Technical Indicators and Sentiment in the **XRP Market**

Beyond the news headlines, technical indicators also signaled weakening momentum in the **XRP Market**. XRP notably broke below an ascending channel pattern, a bearish signal for traders. A critical support level at $3.36 failed to hold, pushing the price down to $2.98, which corresponds to the 38.20% Fibonacci retracement level. This technical breakdown further exacerbated the selloff initiated by the ‘Token Dump’ accusations.

Derivatives data presented a mixed picture. While there was a notable 140% surge in 24-hour trading volume, indicating heightened activity, the 24-hour XRP futures open interest fell over 14%. Specifically, CME and Binance reported declines of 5% and 16%, respectively, suggesting a reduction in leveraged long positions and a potential shift towards more cautious sentiment. At the time of writing, XRP traded at $3.10, representing a 10% drop in the past 24 hours, with its 24-hour range fluctuating between $2.99 and $3.46. The unconfirmed nature of the wallets involved in Chris Larsen’s transfer, whether retail or institutional, further complicates assessments of the selloff’s full impact.

The episode highlights the critical need for stronger governance frameworks in the cryptocurrency space to prevent perceived insider exploitation of token markets. While the **XRP Price** has stabilized slightly since the initial plunge, the incident has reinforced calls for greater transparency from insiders, whose large token movements can profoundly impact investor confidence and asset values.

Conclusion

The recent **XRP Price** volatility, triggered by a substantial transfer from co-founder **Chris Larsen** and compounded by ongoing delays in the **Ripple SEC Lawsuit**, underscores the inherent complexities and sensitivities of the cryptocurrency market. Accusations of a ‘Token Dump’ have shaken investor confidence, demanding greater transparency from key figures within the industry. As the **XRP Market** navigates these turbulent waters, the path forward will depend heavily on regulatory clarity and a renewed commitment to ethical practices that align the interests of founders with those of everyday investors. The coming weeks will be crucial for XRP as the community awaits further developments from both Ripple and the SEC, hoping for stability and a clearer direction for the token’s future.

Frequently Asked Questions (FAQs)

Q1: What caused the recent significant XRP Price drop?

The recent significant XRP price drop was primarily triggered by a large transfer of $175 million in XRP tokens by Ripple co-founder Chris Larsen. This move coincided with a broader market correction and ongoing delays in the Ripple SEC lawsuit, leading to accusations of a ‘Token Dump’ and heightened investor fear.

Q2: Who is Chris Larsen and what was his role in the XRP market event?

Chris Larsen is a co-founder of Ripple. He was involved in the recent XRP market event by transferring 50 million XRP tokens (valued at $175 million) from an address linked to him to four unspecified wallets. This large-scale movement of tokens was perceived by many as a ‘dumping’ action, contributing to the token’s price decline and sparking controversy.

Q3: How did the Ripple SEC Lawsuit impact XRP’s recent performance?

The ongoing Ripple SEC Lawsuit continued to exert pressure on XRP’s performance. Recent delays in the settlement, specifically Judge Analisa Torres rejecting a motion for an indicative ruling, prolonged investor uncertainty. This lack of finality keeps the XRP market sensitive to regulatory news, contributing to its volatility.

Q4: What does ‘Token Dump’ mean in this context?

In this context, a ‘Token Dump’ refers to a large-scale sale of cryptocurrency tokens by an insider (like a founder or early investor) that floods the market, significantly increasing supply and often leading to a sharp price decline. In Chris Larsen’s case, the timing of his transfer led many to accuse him of ‘dumping’ XRP to profit at the expense of retail holders.

Q5: What were the key technical indicators observed during the XRP price drop?

During the XRP price drop, key technical indicators included XRP breaking below an ascending channel pattern and failing to hold a critical support level at $3.36, pushing the price down to the 38.20% Fibonacci retracement level of $2.98. Derivatives data showed a 140% surge in 24-hour trading volume but also a significant fall in XRP futures open interest, indicating cautious sentiment.