Michaela
Summary: Why are Larsen’s XRP transfers raising concerns, and what does it mean for SHIB holders?
Larsen’s $175M XRP move has sparked fears about centralization, as he still controls about 4.7% of the token’s supply. Critics worry this kind of power can destabilize markets if misused. For SHIB holders, it spotlights the strength of decentralized control, where token distribution and governance are more transparent and community-driven.
A wallet linked to Chris Larsen, co-founder of U.S.-based fintech firm Ripple Labs Inc., has transferred 50 million XRP, valued at roughly $175 million, sparking criticism from the crypto community as the token’s price continues to decline.
Blockchain researcher ZachXBT reported that since July 17, a wallet linked to Larsen has moved 50 million XRP to four different addresses. Of that total, approximately $140 million worth of XRP was routed to centralized exchanges or related services, while the remaining $35 million was transferred to two newly created wallets.
In a separate post on X, the blockchain analyst revealed that wallets associated with Larsen continue to hold over 2.81 billion XRP, valued at approximately $8.4 billion.
Current data from CoinMarketCap shows XRP trading near $3.06, with a market capitalization of around $181 billion. Larsen’s holdings represent roughly 4.7% of the total XRP market cap, raising concerns about potential sell pressure if these tokens are moved quickly.
Larsen’s recent transfers have sparked mixed reactions within the crypto community. While some users criticized the move as part of an ongoing trend of insider selloffs, others defended the action, suggesting it was intended to distribute his holdings more broadly. Supporters argue the transfers may support greater decentralization of the XRP network by placing tokens in the hands of long-term holders.
Ripple Labs Faces Centralization Questions
The XRP transfer has once again ignited a familiar debate in crypto circles: who really controls a token’s supply, and can everyday holders trust those at the top not to cash out at key moments?
This kind of “dump” event, especially when it involves a figure as prominent as the Ripple Labs co-founder, raises serious questions about centralization. Moving $175 million worth of XRP, particularly near local price highs, has fueled concerns that even in mature ecosystems, a handful of wallets may still wield outsized influence over market dynamics.
For communities like SHIB, the moment serves as a sharp contrast—and a powerful reminder of why decentralization matters. Many of SHIB’s largest wallets are publicly verifiable and tied to smart contracts, such as ShibaSwap liquidity pools, staking mechanisms, and designated burn addresses. Team-controlled supply is minimal, and governance is designed to evolve through transparent, community-led processes.
In ecosystems built on trust and transparency, tokenomics aren’t just technical details—they’re the foundation of credibility. When the power to tank a market lies in one wallet, the illusion of decentralization starts to unravel. And in that light, SHIB’s emphasis on distributed control, open accountability, and limited insider ownership becomes more than just a feature. It’s the moat that keeps the community strong.
Read More
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- Ripple Pushes for U.S. Bank Status Under Fresh Stablecoin Regs
- Judge Rejects Ripple, SEC Deal to Slash $125M XRP Penalty
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
