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

The XRP community is facing fresh warnings after Ripple co-founder Chris Larsen transferred 50 million XRP tokens to exchanges, sparking fears among investors of being used as “exit liquidity.” The transaction triggered a wave of concern from analysts and market watchers who believe the move may be part of a larger sell-off strategy. J.A. Maartunn, a contributor to the on-chain analytics firm CryptoQuant, weighed in on the situation via social media platform X. “Don’t get dumped on,” Maartunn cautioned. “Don’t be the exit liquidity. Protect yourself.” Massive Holdings Raise Red Flags Larsen’s transfer came just after XRP briefly surged to highs near $3.60 on July 17, approaching its all-time record. Despite the rally, the excitement was quickly tempered by outflows from a wallet linked to Larsen, prompting mixed reactions. Some interpreted the move as normal profit-taking, while others accused him of exploiting the price peak to offload tokens. Maartunn highlighted that the 50 million XRP moved represents only a small portion of Larsen’s reported holdings. According to him, Larsen still holds around 2.58 billion XRP, worth approximately $8.83 billion at current prices. “If $200M was just the warm-up… what’s next?” he asked. Market Pullback After Rally The recent sell-off by Larsen coincided with a broader correction in XRP’s price. After surging as part of a wider altcoin rally—following Bitcoin’s consolidation phase—XRP has pulled back around 13%. It is currently trading at $3.18, according to Cointelegraph Markets Pro and TradingView data. The pullback, coupled with Larsen’s wallet activity, has added to investor caution. Other market analysts, including prominent trader ManLy, echoed the concerns about large holders dumping tokens at the expense of retail investors. Comparisons to Bitcoin Whale Activity XRP’s situation mirrors recent volatility seen in the Bitcoin market. Earlier this month, a Satoshi-era whale liquidated 80,000 dormant BTC, sending BTC/USD sharply lower to around $114,500 before bouncing back. Galaxy Digital reportedly handled that transaction, and the sudden move triggered over $500 million in liquidations across the crypto space, according to CoinGlass data. While Bitcoin quickly recovered, the scale of such transactions highlights the ongoing risks faced by cryptocurrency investors when large holders suddenly move their assets. Cautious Sentiment Prevails For now, analysts are urging caution. XRP’s potential for future growth remains intact, but the looming threat of further sell-side pressure from insiders like Larsen may dampen short-term investor enthusiasm. Many in the XRP community are now watching Larsen’s wallet closely, wary of becoming collateral damage in a larger exit strategy. As Maartunn emphasized, “Protect yourself.”

Source: CryptoIntelligence