Ripple Co-Founder Chris Larsen's $10 Million XRP Donation to Kamala Harris's Campaign Stirs Controversy

Larsen, positioning the move as a push for pro-crypto policies, claimed that Harris could help lead America in tech innovation, including blockchain.

Ripple co-founder Chris Larsen recently donated $10 million in XRP to U.S. Vice President Kamala Harris’s election campaign. Larsen stated that he made this donation to support Harris's pro-crypto stance and help America lead in tech innovation.

However, Ripple's CEO Brad Garlinghouse has distanced the company from partisan politics, adding that Ripple will continue to engage with both Democrats and Republicans.

While Garlinghouse supports Larsen's right to donate, this move has sparked a heated debate on its potential impact on the ongoing Ripple-SEC lawsuit and broader market sentiment towards Ripple and XRP.

Community Backlash To Larsen’s Donation

The XRP community has largely expressed negative sentiments towards Chris Larsen’s $10 million XRP donation to Kamala Harris. Several voices took to social media to air their frustrations, highlighting key concerns about the broader implications for Ripple and XRP.

Ali, a crypto analyst, sarcastically suggested that XRP and XLM should be classified as securities, reflecting concerns that the donation could invite more regulatory attention. "Maybe XRP and XLM should be classified as証券,” the analyst noted in their statement.

Another critical tweet from crypto influencer Wendy O highlighted the disconnect between Larsen's donation and the interests of retail investors.

The crypto trader pointed out that this move appears to prioritize the “ivory towers” of political elites over the everyday XRP community, raising concerns that the donation will not serve the broader investor base.

Moreover, another crypto influencer, known on social media as Nic, took a direct jab at the donation, speculating that Kamala Harris might “dump” XRP to fund her campaign. This sentiment points to a deeper fear within the community — that large-scale political donations may lead to selling pressure on the token, negatively impacting its price.

These reactions indicate a growing concern over Ripple’s political strategies. The backlash suggests that, despite Ripple's attempts to push for favorable regulations, its community fears such moves could backfire, damaging XRP's market credibility and price stability.

The skepticism surrounding this donation also highlights a broader distrust of crypto lobbying’s effectiveness and its alignment with the interests of retail investors.

XRP Price Drops: Reaction To Donation?

In other news, the XRP USD pair plummeted nearly 4% on Oct. 22, reaching a daily low of $0.528 before recovering. The Ripple token faced strong resistance from its 20-day EMA (red) trendline. With the news of Larsen's donation breaking, one might wonder if this price action was a reaction to the news.

The bulls must now break above the EMA resistance to target the resistance at $0.57. A successful breakout and consolidation above the immediate resistance could help XRP price aim for the resistance at $0.633 before a correction.

On the other hand, if the downtrend continues or if Harris decides to dump the XRP tokens, the Ripple token’s price could fall to the support level at $0.49. Furthermore, a break and consolidation below the immediate support level might force the XRP USD pair to test the support at $0.446.

The RSI for XRP on the daily chart remained neutral, with a score of 41.9 at the time of writing.

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