Ripple Chairman Transfers Large Amounts of XRP… Potential for Sell-Off Increases

Source

JOON HYOUNG LEE

Summary

It was reported that Chris Larsen, Chairman of Ripple's Board of Directors, recently transferred a large amount of XRP to cryptocurrency exchanges.
Larsen's holdings in XRP account for about 4.6% of the total market capitalization, so a large-scale sale could increase its price volatility.
The industry sees the possibility of a sell-off by Larsen, but some continue to expect a further rise in the price of XRP.

Cryptocurrency A to Z

To Cryptocurrency Exchanges

Estimated Deposit of $140 Million

Holds 4.6% of XRP

Volatility Likely to Increase If Sold

The recent transfers of XRP (formerly Ripple) by Chris Larsen, Chairman of Ripple’s Board of Directors, to cryptocurrency exchanges have drawn significant attention. There is speculation that Larsen may soon proceed to sell some of his XRP holdings.

According to industry sources on the 27th, Larsen has transferred $175 million (about ₩2.4 trillion) worth of XRP to several wallet addresses from mid-month to very recently. Most of the transferred XRP has reportedly been deposited on centralized exchanges such as the US-based Coinbase. It is estimated that Larsen recently deposited about $140 million (approximately ₩2 trillion) worth of XRP into cryptocurrency exchanges.

Larsen co-founded Ripple, the issuer of XRP, in 2012. After serving as Ripple’s CEO from 2012 to 2016, he is currently the Chairman of the Board. Larsen is said to hold $2.81 billion (about ₩3.9 trillion) worth of XRP.

Some believe that Larsen is preparing to sell XRP, as large transfers occurred right after a strong upward trend in XRP’s price. In fact, when Larsen began making these transfers in mid-month, the price of XRP exceeded $3 for the first time in about five months since early February. An industry insider said, "There is almost no reason to deposit cryptocurrency to exchanges such as Coinbase other than to sell."

If Larsen does go ahead and sell, XRP price volatility is expected to increase significantly. The US crypto news outlet Cointelegraph reported, "Larsen holds about 4.6% of the total XRP market capitalization," adding, "If this quantity is released into the market quickly, it would cause strong selling pressure." However, some believe Larsen may not immediately sell his XRP, as there are expectations that the price of XRP could rise further.

XRP