Ripple’s cryptocurrency, XRP, experienced a significant price swing due to unverified rumors of BlackRock considering an XRP exchange-traded fund (ETF), leading to a significant loss for futures traders.
XRP‘s value saw wild fluctuations, causing market unrest and leading futures traders to incur a loss of around $7 million. The price swings were primarily driven by speculative rumors that BlackRock, the world’s largest asset manager, might be contemplating launching an XRP-based ETF, in the U.S. state of Delaware.
This crypto news swiftly propelled XRP prices from 65 cents to 73 cents within a mere 25 minutes. The sudden spike caught the attention of investors and traders, leading to a frenzy of activity in the XRP futures market.
However, the excitement was short-lived. It was soon discovered that the filing was a fabrication, a meticulously crafted fake using a BlackRock executive’s alias to replicate an official online filing. This revelation caused the XRP prices to plummet back to their previous levels almost as quickly as they had risen.
This is false! Confirmed by BlackRock by me. Some whacko must have added using BlackRock executive name etc. Cmon man. pic.twitter.com/cDpnycYwjQ
— Eric Balchunas (@EricBalchunas) November 13, 2023
The consequence of this false rumor was severe for traders in the XRP futures market. Over the past 24 hours, traders faced liquidations amounting to approximately $7.26 million, a substantial financial hit. This incident of liquidation was the fourth-highest in the cryptocurrency market, trailing only behind Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) futures.
It’s noteworthy that neither BlackRock nor Ripple has confirmed or refuted these rumors. The speculation continues to circulate in various crypto forums and social media platforms, keeping the market participants on their toes.