Recent on-chain activity has put Ripple co-founder Chris Larsen under the spotlight, as he reportedly transferred approximately 50 million XRP—worth around $200 million—to several exchanges over the past ten days. Despite these substantial movements, Larsen still controls over 2.58 billion XRP, valued at roughly $8.8 billion at current market prices.

The timing and scale of these transfers have rattled the XRP community, with CryptoQuant analyst J.A. Maartunn warning that retail investors may be serving as “exit liquidity” for large holders. The typical risk: major token sales occur near local price peaks, allowing insiders to maximize profits while latecomers suffer drawdowns.

If Larsen were to sell more of his massive holdings, the market could face significant downside pressure. Indeed, after hitting a new all-time high of $3.65 in mid-July, XRP has dropped 13% and now trades around $3.18—a decline that coincided with the recent movements of Larsen-linked wallets.

Traders Warn of “Massive Selling” and Investor Risks

Other market participants have voiced similar concerns. Crypto trader “ManLy” flagged the ongoing sell-offs as a possible red flag for retail investors, cautioning: “He’s selling massively. Be careful.” The community remains on edge, and so far, neither Ripple nor Chris Larsen have issued any official statement regarding the transfers.