This week witnessed a surge in the XRP cryptocurrency due to false documentation suggesting a BlackRock fund centred on XRP. This misinformation led to a temporary rally in the token, which saw a rise of about 13% on Monday before BlackRock denied any involvement, causing XRP to lose its gains. This incident mirrors a recent event where a misleading tweet about approving a Bitcoin ETF sparked a significant increase in Bitcoin’s value before the claim was disproven.
These events are part of a growing trend of deceptive practices in the cryptocurrency industry, gaining more attention now as U.S. regulators are anticipated to approve Bitcoin ETFs soon. The U.S. Securities and Exchange Commission has previously pointed to market manipulation and fraud as reasons to keep such funds inaccessible to American investors.
The origin of the fraudulent XRP-related filing on the official Delaware website, which records investment trusts in the state, remains unclear. Delaware officials have passed the issue to the state’s Department of Justice. Interestingly, this incident occurred shortly after Ripple’s CEO Brad Garlinghouse cautioned on the X social media platform about “deepfake scam videos,” urging followers to be cautious and verify news regarding Ripple.
The misleading events in the cryptocurrency market have tangible effects: Prices of tokens often fluctuate dramatically based on even minor news about potential crypto-focused ETFs, and then typically reverse those gains quickly if the information is proven false. The rampant spread of misinformation on X, a platform heavily used for crypto discussions, exacerbates the situation, often leaving traders at a disadvantage. For example, traders betting against Bitcoin experienced significant losses when its price surged following the unfounded ETF approval news that quickly circulated on X. Similarly, those invested in XRP futures faced losses after the token’s value fluctuated due to the deceptive Delaware filing, as reported by CoinDesk.
Despite these challenges, the anticipation for Bitcoin ETFs hasn’t diminished, with many investors viewing them as a critical milestone that could revive interest in the crypto industry, especially after setbacks like the FTX incident. For numerous cryptocurrency enthusiasts, keeping up with every ETF-related development has become almost a full-time endeavor. Instances of fake filings add to the complexity and challenge of this task.
Latest Posts: Crypto.com Secures Coveted Crypto License in Dubai