Traders are concerned about potential insider selling as the Ripple co-founder moves $140 million in XRP to exchanges.
Summary
- Ripple co-founder moved $140M to exchanges, says ZachXBT
- Holders raise alarm over potential insider selling
- The XRP token dipped 8% to a weekly low of $2.99
A major insider move is stirring up concern among XRP (XRP) holders. Between July 17 and 24, the wallet linked to Ripple’s co-founder Chris Larsen moved $175 million in XRP tokens.
According to an analysis by crypto investigator ZachXBT, $140 million of these funds ended up on crypto exchange addresses.
The wallet activity coincided with a drop in XRP’s price, especially on July 24. That’s when the token reached its weekly low at $2.99, registering an 8% price drop in a single day. At the same time, traders pointed out that XRP fell below the 4-hour moving average trendline.
Still, it is hard to attribute the XRP’s price drop solely to insider selling, as it also coincided with a broader downturn in the crypto market.
XRP holders stress over insider selling
In response to the wallet activity, many in the crypto Twitter community have speculated that the Ripple co-founder was dumping his assets. Traders questioned XRP’s decentralization, given that a significant portion of the tokens were in the hands of insiders like Larsen.
Large moves from crypto wallets to centralized exchanges often mean that holders are preparing to sell their assets. Blockchain analysis cannot track funds belonging to an individual user once they hit exchange wallets.
ZachXBT noted that wallets linked to Larsen still hold over 2.81 billion XRP, currently worth about $8.4 billion. This means that there is still potential for significant selling pressure if he decides to sell more of his XRP holdings.
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