In a recent warning, CryptoQuant analyst Maartunn urged investors to rethink purchasing XRP, suggesting they could be used as “exit liquidity” for Ripple’s co-founder, Chris Larsen. The analyst’s caution stems from Larsen’s massive XRP sales, which have raised concerns about market manipulation and the risk of losing money for late buyers.
Larsen’s $200 Million XRP Sell-Off
According to data from CryptoQuant, Larsen transferred a total of $200 million worth of XRP over the past 10 days, executing four separate transactions. These transfers included 10 million, 12.5 million, 25 million, and 12.5 million XRP, each valued at varying price levels.
On July 15, Larsen moved approximately 10 million XRP, worth $28.8 million, when XRP was priced at $2.88. Two days later, on July 17, he sold another 12.5 million XRP, valued at $40.25 million at a price of $3.22 per token. On July 18, as XRP rose to $3.49, Larsen sold an additional 25 million XRP, worth $87.25 million. The final transfer occurred on July 23, when Larsen moved another 12.5 million XRP, valued at $42.12 million.
As a result, Larsen’s XRP balance decreased by 2.56% over the 10 days, dropping from about 2.34 billion XRP to 2.28 billion XRP.
XRP Holders as Exit Liquidity
Following the series of transfers, Maartunn emphasized that XRP holders could be unwittingly serving as the “exit liquidity” for Larsen’s sales. The analyst warned that Larsen is likely selling large amounts of XRP to retail investors, suggesting that those still buying the token could be setting themselves up to lose money as the Ripple co-founder offloads his holdings at their expense.
This pattern of selling by Larsen is not a new development. According to a recent report, Larsen has sold 106 million XRP since the beginning of 2025. The total value of these sales was approximately $344 million at the time, and much of the XRP was moved to liquid exchanges like Coinbase. With a net worth estimated at $9 billion, Larsen still holds about 2.8 billion XRP tokens.
Related article: XRP at $3.60: How High Can Ripple Go in 2025?
Reconsider Buying XRP
Given the scale of these transactions and the potential for retail investors to be used as exit liquidity, Maartunn strongly advises caution. He suggests that anyone still purchasing XRP should carefully consider the risks, as Larsen continues to sell large amounts of the token.
The data and warning highlight a critical issue for XRP investors, especially those looking to buy in during a market rally. With Larsen’s continued sales, late buyers may be left holding the bag as prices recede, potentially leading to losses for those unaware of these dynamics.
