In a recent unexpected event, the cryptocurrency market experienced major turmoil due to the fraudulent application of BlackRock XRP Trust.
Bloomberg analyst Eric Balchunas confirmed that the filing was fraudulent and that it caused a dramatic 15% rise and fall in the price of XRP.
This is a lie! I checked with BlackRock. They must have added something using the names of BlackRock executives or something. hey hey. pic.twitter.com/cDpnycYwjQ
— Eric Balchunas (@EricBalchunas) November 13, 2023
Also read: Nasdaq submits proposal to list BlackRock’s Ethereum Trust shares.
Ripple effects of fraudulent declarations
The roots of this market turmoil can be traced to a filing posted on the website of the Delaware State Department of Corporations. The application was mistakenly attributed to BlackRock, a US multinational investment management company, and was for the ‘iShares XRP Trust’.
The announcement that BlackRock may invest in XRP caused a rapid and significant increase in the value of the cryptocurrency, rising more than 15% in just one hour. Unfortunately, this growing enthusiasm was short-lived. Once the truth about the dubious nature of the application surfaced, the price of XRP plummeted back to its original level.
Therefore, this incident has brought to light an essential question: how can such significant market movements be triggered based on unverified information, and what does this say about the current state of the cryptocurrency market? Does it tell a story?
Investigate the source of the declaration
a bloomberg Analyst Eric Balciunas, citing sources within BlackRock, confirmed that the filing was false. Although listed on his website in Delaware, this filing was not initiated by his BlackRock. The question that puzzles many is who is behind this impersonation and what were their motives?
“That’s strange. The real question is who is pretending to be BLK and registering their legal name?”
Furthermore, Ripple CEO Brad Garlinghouse said, expressed his dissatisfaction We question YouTube for its vigilance in monitoring such fraudulent content. He cautioned the public to only trust information from Ripple’s official accounts.
“Deepfake scam videos (e.g. below) that superimpose new words onto old video footage of Ripple events are on the rise (@YouTube, are you falling asleep at the wheel again?!). Caution: Do not trust Please confirm (all approved messages will only be sent from Ripple’s official account).
Meanwhile, a representative from the Delaware State Department of State declined to comment on the matter, leaving a mystery as to how the fraudulent BlackRock name ended up on the official website. . This incident not only casts a shadow on the credibility of the information source, but also highlighted the vulnerability of the crypto market to news-based volatility.
Market reaction and future impact
XRP price soared to $0.75, then returned to $0.62, after which trading volume soared 250%. While not uncommon in the cryptocurrency world, this price movement is a stark reminder of the market’s sensitivity to news, especially when important players like BlackRock are involved.
Interestingly, the same BlackRock contact name was listed on the fraudulent XRP and legitimate Ether-based fund applications, adding an additional layer of intrigue to the scenario. The incident coincides with broader market movements that have also seen Bitcoin rise significantly, driven by expectations for a US SEC-approved spot Bitcoin ETF.