XRP Community Criticizes Yellow Token Sales on XRPL

After the introduction of YELLOW token trading on the XRP Ledger, part of the XRP community criticized transactions from a wallet linked to the Yellow Network team. According to U Today on November 4, 2026, the sales amounted to approximately 20,000 XRP. A project representative described them as arbitrage, but participants in the discussion questioned this explanation.

Why the Token Sale Controversy Arose

According to U.Today, in the early hours of Yellow token trading, it was significantly more expensive in the XRPL than in Ethereum. The publication attributes the difference to high demand and the lack of a direct mechanism to transfer this asset between networks. Under such conditions, prices may diverge even if the tokens belong to the same project.

Burak Cem, a representative of Yellow, described the operations in private correspondence as “team wallet arbitraging.” According to his explanation, the sales were intended to reduce the token's price premium on the XRPL.

XRP Ledger ecosystem developer Kai Leroy doubted the possibility of full-fledged cross-network arbitrage without a working bridge for the token. Some community members labeled the sales as liquidity withdrawal at the expense of early buyers. These are critics' accusations, not proven facts of violation. U.Today does not provide a complete list of transactions and a verified wallet address in the article, so it is impossible to independently confirm the amount and ownership of the operations by the team based on the publication.

What is Known About Yellow's Funding

In September 2024, Yellow Network raised $10 million in a seed investment round led by Ripple co-founder Chris Larsen. Other investors, including Consensys and GSR, also participated. Therefore, it is incorrect to claim that Larsen personally invested the entire $10 million, as his individual contribution is not disclosed.

The YELLOW token itself was launched on March 8, 2026, and the Yellow protocol was deployed on the Ethereum mainnet on March 17. The November event concerns trading on the XRPL, not the initial token issuance.

Yellow is developing clearing and settlement infrastructure, including for automated trading and AI agents. As of the publication date, the company has not provided additional public clarification on the controversial sales. To assess the situation, verifiable addresses, transaction history, and data on counter-operations are needed if the team indeed conducted arbitrage.