XRP Holders Should ‘Protect Themselves’ Amid Chris Larsen-Linked Sales

Key points:

  • Ripple co-founder Chris Larsen sparks warnings to XRP investors after a wallet linked to him sends 50 million tokens to exchanges.

  • Larsen notionally has over 2.5 billion XRP left, which would create massive selling pressure if distributed.

  • XRP/USD currently trades 13% below recent all-time highs, failing to recover after the sell-off.

XRP (XRP) investors face new warnings over becoming โ€œexit liquidityโ€ after Ripple co-founder Chris Larsen moved 50 million tokens to exchanges.

In a response on X, J. A. Maartunn, a contributor to onchain analytics platform CryptoQuant, told XRP holders not to โ€œget dumped on.โ€

Chris Larsen XRP transactions: โ€œWhatโ€™s next?โ€

XRP hit near all-time highs above $3.60 on July 17, but the achievement was quickly overshadowed by large outflows from a wallet linked to Ripple co-founder Chris Larsen.

As Cointelegraph reported, reactions on social media were mixed, with some seeing a reasonable profit-taking move and others accusing Larsen of deliberate offloading at the highs.

Continuing the topic, Maartunn warned that the walletโ€™s giant XRP stash meant that the recent 50 million XRP outflows were merely a drop in the ocean.

Larsen, he suggested, could increase sell-side pressure by a huge factor should he choose to pull more of its balance.

โ€œChris Larsen (Ripple co-founder) still holds 2.58B $XRP โ€” thatโ€™s $8.83B,โ€ he wrote.ย 

โ€œIf $200M was just the warm-up… whatโ€™s next?โ€

XRP balance of wallet linked to Chris Larsen. Source: Maartunn/X

XRP was one of the major altcoins leading the sectorโ€™s comeback this month after Bitcoin (BTC) began consolidating.

Currently at $3.18, according to Cointelegraph Markets Pro and TradingView, XRP/USD has since corrected 13%.

XRP/USD 4-hour chart. Source: Cointelegraph/TradingView

โ€œDonโ€™t get dumped on. Donโ€™t be the exit liquidity. Protect yourself,โ€ Maartunn added.

Other popular market participants joined the concerns, including trader ManLy.

Bitcoin price shrugs off massive 80,000 BTC sale

Larsenโ€™s presumed sales came as Bitcoin itself faced snap downside pressure as a Satoshi-era whale sold 80,000 BTC, which had previously been dormant for 14 years.

Related: Ether to show Bitcoin โ€˜leadershipโ€™ as BTC ETFs lose $285M: Research

The transaction was handled by Galaxy Digital and briefly caused BTC/USD to drop to around $114,500 before rebounding.

During the volatility, 24-hour crypto liquidiations passed $500 million, per data from monitoring resource CoinGlass.

Total crypto liquidations (screenshot). Source: CoinGlass

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.