A rigged XRP ETF filing caused a surge in XRP’s price, but the rally quickly evaporated after the filing was exposed as a sham, leading to millions in liquidations.
Within the last 24 hours, XRP experienced a rapid surge, climbing dramatically from $0.665 to over $0.73 in under 30 minutes. This surge coincided with news of the trillion-dollar asset manager BlackRock reportedly filing for an XRP exchange-traded fund (ETF).
The weight of such news caused XRP to print significant gains in minutes. However, the upsurge was short-lived, as XRP reverted to trading at $0.65 within an hour.
Notably, the bullish XRP rally extinguished itself just after starting as crypto market participants learned that the said XRP filing was a sham. Initially, the filing created a heated debate as some people argued it was genuine, given its presence on an official website in the United States.
In a recent tweet, attorney Fred Rispoli confirmed the presence of the supposed XRP filing on the Delaware Corp. Commission website. He pondered the feasibility of having a faked filing on an official portal. Besides, he noted the application is similar to BlackRock’s recent Ethereum ETF submission, save for the falsified date and name.
#XRPCommunity
My thoughts on the iShares XRP Trust story:1. It is indeed on the Delaware Corp. Commission website. I search this all the time to look up the right entity to sue in my legal cases.
2. Could someone file a fake entity? I'm only familiar in filing these in CA and…
— Fred Rispoli (@freddyriz) November 14, 2023
On the other hand, attorney Jeremy Hogan affirmed that a bogus filing can indeed be submitted. The lawyer noted it only costs $500 to register such an application on the target U.S. state website. In his words:
“It’s a fraud. But it’s actually very easy and just costs $500. You only need to file two documents, pay the money, and you get a ‘placeholder’ on the state website.”
You can spoof the formation of an "XRP ETF" Trust.
It's fraud, but it's actually very easy and just costs $500.
You only need to file two documents (attached), pay the money, and you get a "placeholder" on the state website.
That's all I can tell you-other than "good night!" pic.twitter.com/0ZuHigrxWU
— Jeremy Hogan (@attorneyjeremy1) November 14, 2023
Bogus XRP ETF Filing Causes $6.2M in Loss
Meanwhile, the development has had damaging implications for traders betting on XRP’s price.
In particular, data from prominent market tracker Coinalyze suggested that traders with a wager on XRP have lost $6.2 million in the last 24 hours. The overwhelming majority of that liquidation (72.75%) occurred within the hour the purported BlackRock XRP ETF filing surfaced.
While XRP traders that opened long positions, betting on XRP’s uptick, lost $1.841 million, the other category relinquished a more substantial $2.67 million. Put together, $4.511 was liquidated in the XRP futures market in under four hours.
Given the counterfeit XRP ETF filing and the multi-million dollar liquidation that followed, pundits have argued it was a clear case of deliberate market manipulation.
Also, a similar case happened in October when a false report claimed the approval of BlacRock’s pending Bitcoin spot ETF. The development caused Bitcoin to break above $30k in minutes.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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