New Project Backed by Ripple Co-Founder Faces Heavy XRP Community Backlash
Yellow Network, a digital-asset clearing project whose September 2024 seed round was led by Ripple co-founder Chris Larsen, drew criticism from some XRP Ledger community members after its token began trading. U.Today reported on November 4, 2026 that observers questioned token sales from a wallet it described as associated with the project’s team. Coin Network has not independently verified the wallet’s ownership or the transactions.
What was reported
According to U.Today, the Yellow token launched on both Ethereum and the XRP Ledger (XRPL). With no direct technical bridge between the two networks, the report said, the token’s price on the XRPL was initially much higher than on Ethereum.
U.Today said tokens worth about 20,000 XRP were sold on the XRPL market from a wallet associated with the team. It reported that project representative Burak Cem described the activity in private chats as “team wallet arbitraging,” intended to reduce the price premium and align the two prices.
The publication also quoted a reaction from Kaj Leroy, a developer known in the XRP Ledger ecosystem, who expressed doubt that full arbitrage trades were technically possible without a working cross-chain bridge. These are attributed accounts in a dispute. They are not proof of wrongdoing, and they do not represent the views of the whole XRP community.
Larsen’s connection to Yellow
In September 2024, Yellow announced a $10 million seed round led by Larsen. The announcement describes Yellow Network as a decentralized clearing network for digital assets. It does not state that Larsen personally provided the whole $10 million, and U.Today’s description of the amount as a personal investment goes further than Yellow’s own wording. The funding link does not show that Larsen directed or knew of the reported transactions.
What remains unconfirmed
The ownership of the wallet, the full context of the transactions and the accuracy of the private explanation have not been independently verified here, and Coin Network has not reviewed the private messages. U.Today did not report an official project response beyond that explanation at the time of its article. Any later statement from Yellow is not reflected here. This article is not a recommendation to buy or sell the token.
Frequently Asked Questions
What is Yellow Network?
Yellow describes itself as a decentralized clearing network for digital assets. Its September 2024 announcement said it had raised a $10 million seed round led by Ripple co-founder Chris Larsen, with other backers and supporters.
Why did parts of the XRP community criticize it?
U.Today reported that observers questioned sales of tokens worth about 20,000 XRP from a wallet associated with the project’s team shortly after the token began trading.
What did the project say?
U.Today reported that project representative Burak Cem described the sales in private chats as team-wallet arbitrage meant to narrow a price gap between the two networks. That explanation has not been independently verified, and a developer cited by U.Today questioned its technical feasibility.
Is there proof of wrongdoing?
No. The reported transactions and the disagreement over their purpose are unconfirmed allegations and explanations. Coin Network has not established wrongdoing by the project or by any individual.
Sources
Correction, November 6, 2026: An earlier version of this article relied only on a headline and did not identify the project or describe the reported dispute. It has been rewritten using the attributed sources above, and it states what has not been independently verified.