Sales of substantial amounts of XRP tokens by Ripple co-founder Chris Larsen have ignited concerns about the influence of large holders on the cryptocurrency’s market stability and investor sentiment. This activity occurs amidst recent price corrections for the digital asset.
Larsen has sold over 100 million XRP tokens since its price peaked, totaling approximately $200 million. Despite these sales, he retains a significant holding of 2.58 billion XRP, valued close to $7.9 billion at current prices. Market observers view these consistent disposals by a key figure as a potential signal that the market may have reached a peak.
The sales activity coincides with a roughly 20% correction in XRP’s price following its highs. This price movement has intensified speculation regarding the impact large holders can exert on volatility and price support.
Market analyst J.A. Maartun suggested Larsen’s recent disposals could represent the start of a larger divestment strategy, potentially impacting the token’s supply dynamics and on-market liquidity.
Further intensifying market scrutiny, comparisons are being drawn to the actions of fellow Ripple co-founder Jed McCaleb. McCaleb concluded a prolonged, multi-year program of selling his XRP allocation nearly three years ago.