XRP Transaction Scrutiny Sparks Market Concern
As XRP’s price retreats, a newly flagged transaction originating from a wallet tied to Ripple co-founder Chris Larsen is facing scrutiny from the crypto community. The move involved the dispersal of 50 million XRP, approximately valued at $175 million, spanning July 17th and recent days.
Blockchain investigator ZachXBT pinpointed these transfers in a tweet. Analysis revealed that roughly $140 million worth of XRP was routed towards centralized exchanges, a pattern often interpreted as seeking liquidity, or “dredging.”
Insider Holdings Remain Significant
ZachXBT underscored that Larsen’s linked wallets continue to hold over 2.81 billion XRP (worth approximately $8.4 billion). Responding to criticism concerning the large volume of XRP circulation, the investigator noted the relative market position.
Potential Market Impact and Timings
XRP is currently trading near $3.09, under a total market capitalization of $183 billion. Larsen’s existing holdings constitute roughly 4.6% of the total supply. The recent transfer, unfolding amidst a decay from a peak above $3.60, intensified speculation regarding short-term selling pressure and accusations of “dumping.”
Community chatter expressed displeasure, with one user criticizing what they termed “predatory dumping,” prompting playful repartee on social media.
Conversely, a minority view suggested the transaction was aimed at distributing holdings “to longer-term holders,” supporting decentralization. However, as of press time, neither Larsen nor Ripple had offered public comment.
XRP’s Trajectory Despite Downturn
Looking ahead, Bitpanda’s deputy CEO, Lukas Enzersdorfer-Konrad, maintains XRP’s potential to reclaim its 2018 peak of $3.84. He attributes any significant upside potential not to specific catalysts unique to XRP but to improvement in broader market sentiment and continued capital rotation towards altcoins from Bitcoin dominance.
