Introduction
A recent deceptive filing for an XRP Exchange-Traded Fund (ETF) attributed to BlackRock has caused a short-lived surge in XRP’s price, resulting in substantial liquidations in the futures market.
The Surge and Plummet of XRP
Brief Surge Fueled by Rumor:
XRP's price experienced a sharp increase, leaping from $0.665 to over $0.73 within just 30 minutes. This spike was triggered by reports that BlackRock, the trillion-dollar asset manager, had filed for an XRP ETF.
Sharp Reversal on Exposure of the Sham:
The increase was ephemeral, as the price reverted back to around $0.65 within an hour after the market realized the ETF filing was a hoax.
Examining the Falsified Filing
Rumors and Confirmations:
Debate stirred as the ETF filing was spotted on the official Delaware Corp. Commission website, raising questions about its authenticity. Attorney Fred Rispoli noted similarities with BlackRock’s Ethereum ETF submission, questioning the legitimacy of such a filing on a government site.
Legal Insight on Filing Authenticity:
Attorney Jeremy Hogan clarified that fraudulent filings are indeed possible and relatively easy to execute, costing only $500 for registration on the state website.
Impact on the Market
Significant Liquidations Recorded:
Traders betting on XRP’s price surge faced heavy losses. According to Coinalyze, about $6.2 million was lost in 24 hours, with the majority of liquidations happening within the hour of the fake ETF news.
Breakdown of Losses:
Those with long positions in XRP futures suffered losses of $1.841 million, while others lost $2.67 million, totaling $4.511 million in liquidations in less than four hours.
Conclusion
The aftermath of the counterfeit XRP ETF filing resulted in significant financial implications, shedding light on the susceptibility of cryptocurrency markets to manipulation and misinformation. This incident serves as a cautionary tale, underscoring the need for vigilance and verification in the volatile world of digital assets.
