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News/XRP's Wild Ride on Fake BlackRock ETF News

XRP's Wild Ride on Fake BlackRock ETF News

Van Thanh Le

Nov 15 2023

5 months ago3 minutes read
Chibi cubic robot with shocked expression among fluctuating crypto values on a bright yellow background

XRP's Price Surge and Crash: A Tale of Rumors and Reality

XRP, the digital asset from Ripple, recently experienced a rollercoaster ride in its market value. The currency saw a significant surge of 15.76%, peaking at $0.75, only to face a 12% downturn following the debunking of a circulating rumor. 

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This price movement was sparked by false claims suggesting BlackRock, the global investment giant, was planning to file for an XRP-based ETF. 

The rumor, which originated from a dubious business registration on Delaware’s Division of Corporations website, was later confirmed as a fabrication.

BlackRock's Clarification and the Crypto Market's Reaction

BlackRock quickly stepped in to deny these rumors, stating unequivocally that no such filing had been made. While the investment firm has shown interest in cryptocurrencies, evidenced by its filings for spot bitcoin and ether ETFs, it has made no moves towards an XRP ETF. 

This incident isn't isolated in the crypto world; similar tactics involving fabricated corporate information have previously influenced the market, like the fake BlackRock bitcoin ETF approval that spurred a brief rally.

Scammer Schemes and Market Manipulation

Attorney Jeremy Hogan brought to light the disturbing ease with which such fake ETF news can be created, with costs as low as $500. He pointed out the potential for scammers to profit millions by exploiting such misinformation. 

Hogan's analysis painted a scenario where a scammer could net $2-3 million by manipulating XRP prices through fake news. 

This highlights the need for skepticism and thorough fact-checking in the crypto community, especially given the $7.26 million lost in XRP futures within 24 hours due to this rumor-induced volatility.

Ripple's Involvement and Community Speculation

Amidst these price fluctuations, a significant transaction involving 24 million XRP, worth approximately $15.6 million, was detected. 

This transaction was linked to a wallet associated with Ripple Labs, known for transferring large XRP amounts to exchanges. Despite BlackRock’s denial, some in the XRP community continue to speculate about the legitimacy of the ETF filing.

Deepfake Scams Targeting XRP Community

Ripple CEO Brad Garlinghouse raised alarms about deepfake videos impersonating him to promote fraudulent schemes, including fictitious giveaways like a 100 million XRP giveaway. 

Garlinghouse urged the community to verify information through official channels and criticized platforms like YouTube for allowing the spread of such deceptive content.

Technological Advancements in the XRP Ledger

In the meantime, the release of Ripple server software version 2.0.0 marks a significant development milestone for the XRP Ledger. This update promises enhanced transaction performance, potentially reaching 3,400 TPS, up from the previous 1,500. 

It introduces key amendments like XChainBridge for asset interoperability, decentralized identity compliance, and improvements in transaction processing. Additionally, a new API version and RPC method represent a major shift in the ledger's operational framework, facilitating easier ecosystem connectivity.

BlackRock XRP Trust Faker Faces Legal Heat

According to a Tuesday Bloomberg report, the Delaware Department of Justice is now investigating a fraudulent filing for a "BlackRock iShares XRP Trust." This fake news initially caused a significant spike in XRP's price, misleading investors. 

The filing, had it been genuine, would have suggested BlackRock's venture into an XRP ETF, mirroring their recent Ethereum trust registration. However, BlackRock has clarified that the XRP filing was a hoax, reaffirming their focus on Ethereum.

SEC's Stance on Bitcoin ETFs Unshaken by XRP Hoax

Despite the turmoil caused by the XRP filing hoax, experts believe this incident won't drastically alter the SEC's approach to Bitcoin ETFs. The SEC has consistently raised concerns about market manipulation while reviewing Bitcoin ETF applications. 

Bloomberg's ETF analyst, Eric Balchunas, pointed out that although the incident is a setback, it's unlikely to be a decisive factor in the SEC's decision-making process.

Community Outcry and Legal Scrutiny

The XRP community, led by voices like Dark Defender, has expressed deep frustration over the hoax. There's a growing call for legal action against those responsible for this deception. 

Legal experts, including pro-XRP lawyers, have criticized the SEC's annual enforcement report, highlighting its shortcomings and the conspicuous absence of the Ripple case. This criticism extends to the SEC's broader actions in the crypto space, with cases like LBRY coming under scrutiny.

SEC's Enforcement Report: A Deep Dive into Crypto Regulation

The SEC's latest enforcement report is a comprehensive document detailing actions, financial remedies, and investor compensations. It sheds light on various issues in the crypto sector, including frauds, unregistered offerings, and compliance failures among crypto-asset intermediaries. 

High-profile cases involving Terraform Labs, Richard Heart, and FTX's Samuel Bankman-Fried are notable inclusions, reflecting the SEC's active role in regulating the crypto landscape.

Celebrities in the SEC's Crosshairs

Animated characters engaged in crypto activities with a watercolor cityscape at dusk.webp

The SEC has not shied away from charging celebrities for their roles in promoting crypto securities without proper disclosures. High-profile figures like Paul Pierce, Kim Kardashian, and Lindsay Lohan have faced charges for such promotions. This trend underscores the SEC's commitment to ensuring transparency and accountability in crypto endorsements.

Key Takeaway

The recent events surrounding XRP underscore the volatile nature of the cryptocurrency market, particularly when influenced by misinformation and scams. The fake BlackRock ETF filing and the subsequent market reaction highlight the importance of vigilance and fact-checking within the crypto community. 

Meanwhile, technological advancements like the rippled v2.0.0 update demonstrate ongoing efforts to enhance the XRP Ledger's capabilities, promising improved performance and interoperability. These developments reflect the dynamic and evolving landscape of the cryptocurrency world.

FAQs

1. What Caused XRP's Recent Price Volatility?

XRP's price volatility was triggered by a false rumor about BlackRock planning an XRP-based ETF. The rumor was later debunked, causing a significant price drop.

2. How Do Fake News Impact Cryptocurrency Markets?

Fake news can lead to rapid and significant price fluctuations, as seen with XRP. Investors often react quickly to such news, causing market volatility.

3. What Are Ripple's Recent Technological Advancements?

Ripple's recent advancements include the rippled v2.0.0 update, enhancing transaction performance and introducing new features for asset interoperability and decentralized identity compliance.

4. How Can Investors Protect Themselves from Crypto Scams?

Investors should verify information through official channels, be skeptical of too-good-to-be-true offers, and stay informed about common scam tactics in the crypto space.

5. What Role Does Ripple Play in Large XRP Transactions?

Ripple Labs is often linked to large XRP transactions, transferring significant amounts to exchanges. These transactions can influence the market but are part of Ripple's operational activities.

This article has been refined and enhanced by ChatGPT.

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