The crypto community became riled with disdain after credible sources discredited a fake XRP spot ETF product filed about a week ago in Delaware.
The fake XRP ETF caused a massive upshoot in the price of the digital currency as many traders moved to “buy the rumor”. This misguided XRP fundamental proved to be quite costly as the price reversed its gains, leaving many traders who bought the top at a loss.
Profiling the XRP ETF Hoax
Despite more than a week passing since the XRP ETF news went mainstream, detailed feedback on who the perpetrators are remains elusive. An analysis of the event shows that the details in the filing make it hard to decipher who the masterminds are.
Per the analysis, anyone could apply and input the name of any registered agent. Coindesk’s Nikhilesh De observed that the ETF filers copied the name of the Managing Director at BlackRock from the Ethereum ETF filing the company submitted earlier. He noted that details from the Bitcoin spot ETF did not feature in the XRP filing as the information contained was different.
Nikhilesh pointed out that many people fell for the filing as deciphering the filer through signatures, emails or other resources was practically important based on the current system.
Speculative as the crypto ecosystem can be, many in the industry had already started profiling what XRP ETF can mean for Ripple On-Demand Liquidity, positioning investors’ minds to go all out in the hope the filing was legit.
The confirmation that the filing did not originate from BlackRock triggered a $6.2 million liquidation in XRP Futures, an event that marks one of the key avenues investors suffered from the hoax.
One key lesson learned from this ordeal is to cautiously ride the tide and to always make decisions only after there’s confirmation on major news from verified sources. Maintaining proper risk management also ranks high as that prevents investors from undue liquidations.
Will BlackRock File XRP ETF?
Though many investors were disappointed with the fake XRP ETF filing, speculation within the XRP community now points toward a possible application of the product by BlackRock. However, this remains a conjecture.
The investment management giant has already submitted applications for both Bitcoin and Ethereum spot ETF filing. As a result, many question why the firm has not looked to XRP, the only altcoin with regulatory clarity in the US.
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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