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XRP, the cryptocurrency affiliated with Ripple, is facing tumultuous market movements as a fake BlackRock XRP trust registration stirs chaos among traders, resulting in substantial losses and a rapid price rollercoaster.

Ripple’s XRP cryptocurrency experienced a surge in prices from 65 cents to 73 cents and back to 65 cents within a mere 25 minutes as evident in the chart below, triggered by a tweet suggesting that financial giant BlackRock had filed for an XRP ETF in Delaware.

The fake BlackRock XRP ETF news, coupled with reports from reputable crypto news outlets, fueled a frenzy in XRP trading.

However, the excitement was short-lived as it was later revealed that the BlackRock filing was a hoax, causing XRP prices to plummet back to their initial levels.

Bloomberg ETF analyst Eric Balchunas confirmed the falseness of the BlackRock filing, highlighting the use of a BlackRock executive’s name to add credibility to the fake information.

This is false! Confirmed by BlackRock by me. Some whacko must have added using BlackRock executive name etc. Cmon man. pic.twitter.com/cDpnycYwjQ

The repercussions of the fake BlackRock filing were felt by XRP futures traders, who collectively faced losses totalling $7.26 million within the 24 hours following the misinformation.

Coinglass data indicates that these losses ranked fourth in comparison to other major cryptocurrencies, with Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Memecoin’s MEME futures leading in liquidations.

Over 75% of the affected XRP traders had opened long positions, indicating bets on higher prices. Astonishingly, these traders entered orders amounting to nearly $5 million during the short-lived surge, without validating the authenticity of the BlackRock filing.

The majority of the leveraged XRP trades were executed on prominent cryptocurrency exchanges, including Binance and Bybit. Position sizes varied widely, ranging from modest amounts to substantial figures exceeding $200,000.

Liquidation, the forceful closure of leveraged positions by an exchange due to insufficient margin, played a significant role in this scenario. When traders failed to meet margin requirements amidst the price swing, the exchanges automatically closed their positions, leading to a staggering $7.26 million in losses.

This incident underscores the susceptibility of cryptocurrency markets to misinformation and the potential risks associated with leveraged trading.

The post $7M losses amid fake BlackRock XRP Trust filing, XRP price whipsawed appeared first on Invezz

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