The crypto world is buzzing with concern after an analyst warned that a wallet linked to Ripple co-founder Chris Larsen could unleash up to $9 billion in XRP, potentially crashing the market. This news comes hot on the heels of a 50 million XRP transfer—worth about $175 million—to exchanges, sparking fears of massive sell-offs. Let’s unpack what’s happening, why it matters, and what investors should watch for in this high-stakes drama.
The Larsen Wallet: A Ticking Time Bomb?
On July 17, 2025, XRP hit a post-2021 high of $3.60, riding a wave of altcoin enthusiasm as Bitcoin consolidated. But the euphoria was short-lived. Blockchain sleuth ZachXBT flagged a wallet tied to Chris Larsen, Ripple’s co-founder, moving 50 million XRP to centralized exchanges between July 17 and July 24. At the time, this was valued at roughly $175 million, with $140 million sent to platforms like Coinbase, often a sign of intent to sell.
Analyst J.A. Maartunn from CryptoQuant dropped a bombshell on X, noting that Larsen’s wallet still holds 2.58 billion XRP—worth $8.83 billion at current prices. “If $200M was just the warm-up… what’s next?” Maartunn tweeted, warning XRP holders not to become “exit liquidity” for Larsen’s potential sales. The market felt the heat: XRP slumped 13% to $3.18, with a liquidation cascade wiping out $105 million in long positions.
Why This essential for XRP Investors
Larsen’s wallet holds about 4.6% of XRP’s total market cap, a massive chunk that could flood the market if sold. The recent 50 million XRP transfer already triggered a 14% price drop, and analysts fear further sales could deepen the correction, especially with an expected market lull in August. On X, trader ManLyNFT cautioned, “You might be his exit liquidity,” pointing to Larsen’s $175 million transfer as a deliberate move to cash out at peak prices.
Social media reactions are split. Some see Larsen’s moves as standard profit-taking—after all, his net worth has soared from $3.2 billion in 2024 to $10 billion in 2025, largely due to XRP’s rally. Others, like Reddit user Comfortable_Fly_7943, argue Larsen’s sales are just the tip of the iceberg. They point out that Ripple’s founders once held 20% of all XRP, with Larsen still controlling a significant stake and influence over Ripple Labs, which owns 40% of the remaining supply.
Ripple’s Role and Market Dynamics
Ripple’s business moves add context to the drama. The company recently applied for a U.S. National Trust Bank Charter, which could bring it under federal oversight and boost its credibility. It’s also expanding RippleNet and the XRP Ledger for faster, cheaper cross-border payments, fueling XRP’s price surge. In June 2025, Ripple dropped an appeal in its SEC lawsuit, potentially paving the way for an XRP ETF, which some analysts believe could drive prices toward $6.
But Larsen’s sales cast a shadow. The wallet’s activity isn’t new—since early 2025, it has moved 106 million XRP ($344 million) to exchanges. Critics argue this pattern suggests a strategic exit, with Larsen leveraging XRP’s rally to unlock value. Reddit discussions highlight the token’s “special kind of hell” tokenomics, noting that Ripple’s control over the supply and Larsen’s dual role as a founder and major shareholder create risks for retail investors.
The Risks: Exit Liquidity and Market Volatility
The term “exit liquidity” is haunting XRP holders. It refers to retail investors absorbing the losses when whales like Larsen sell at highs. Maartunn’s warning underscores this: a $9 billion sell-off could tank XRP’s price, especially if institutional demand wanes. The recent 50 billion XRP sale (likely a typo for 50 million in some reports) already caused a 10% drop, testing support at $3.06–$3.10.
Broader market turbulence doesn’t help. A Satoshi-era Bitcoin whale sold 80,000 BTC, briefly pushing BTC/USD to $114,500 and triggering $500 million in crypto liquidations. While unrelated to XRP, this volatility highlights how whale moves can ripple across markets. X posts from accounts like @SatoshiWatch and @Aibstracta amplify the fear, warning of “significant selling pressure” if Larsen continues unloading.
What Should Investors Do?
Navigating this storm requires caution. Here are practical steps for XRP holders:
- Monitor On-Chain Activity: Use tools like AIXBT or Nansen to track whale movements. Larsen’s wallet activity is a red flag, so stay vigilant.
- Set Stop-Losses: With XRP at $3.18 and support levels shaky, protect your portfolio from sudden dumps.
- Diversify: Don’t bet everything on XRP. Its tokenomics and whale risks make it a high-stakes play.
- Watch Ripple’s Moves: An ETF approval or bank charter could boost XRP, but Larsen’s sales could offset gains.
The Bigger Picture: Whales vs. Retail
Larsen’s actions highlight a broader truth: crypto markets are a battleground between whales and retail investors. High-net-worth players like Larsen can build ecosystems while destabilizing prices. As Cointelegraph notes, his wallet’s $9 billion stash is a “sell-off threat” that XRP holders can’t ignore. Yet, some analysts, like Bitpanda’s Lukas Enzersdorfer-Konrad, remain bullish, arguing XRP could break its 2018 high of $3.84 if altcoin momentum continues.
For now, the market is on edge. Larsen hasn’t commented, and Ripple’s silence fuels speculation. Whether this is profit-taking or a calculated exit, the $9 billion question looms large. Investors should brace for volatility, do their own research, and avoid getting caught in the whale’s wake.
Sources:
- Cointelegraph: XRP wallet linked to Chris Larsen still has $9B to sell, analyst warns
- AInvest: XRP News Today: Ripple co-founder’s $9B XRP wallet triggers 13% price drop warnings
- Reddit: r/CryptoCurrency, XRP wallet linked to Chris Larsen still has $9B to sell, analyst warns
- CoinDesk: XRP Price News: Drops 14% as $175M Moved to Exchange by Ripple Co-Founder’s Wallet
- Coinpedia: Amid XRP Price Surge, Ripple Co-Founder Chris Larsen Moves $26M in XRP to Coinbase
- DL News: Ripple co-founder cashes out $26m XRP as asset nears record highs
- X Posts: @CoinDotNews, @Aibstracta, @SatoshiWatch,
Do you guys think this is just profit-taking, or is something bigger going on with Ripple?
That’s a lot of power for one guy.
That’s massive! Hope it doesn’t tank the market. Coz it seems like we’re already heading for quarter 3 bearish
XRP’s been resilient through worse, like the 2020 Jed McCaleb dumps
Anyone know if these are confirmed sales or just transfers?
Larsen’s $9B stash is 4.6% of XRP’s market cap?!
Not worried about Larsen’s moves.
I’m calling BS on the panic.