Just when you thought that the crypto world would get rid of false news that would drive the price of a crypto token up and raise false hopes regarding a price surge of that particular token and further improve the sentiment of the market, comes another sham news that did exactly that.
In an interesting turn of events, the crypto world got all hyped up when the news started circulating on social media that BlackRock had filed for an XRP-based ETF application, only to discover later that it was entirely false news.
The contradiction was made by Jeremy Hogan, a legal expert known for tracking Ripple’s legal battles. He was the one who contradicted this news and warned the crypto community that they should exercise extreme caution. The news certainly dampened the mode of XRP enthusiasts hoping for a win for their beloved token in terms of getting some positive news attached to the token.
The news of BlackRock applying for XRP ETF caused a stir in the market, where many people saw the price of XRP rising to as high as $0.75. The excitement, however, didn’t last long, and BlackRock immediately clarified through their social channels that the news was a hoax and the firm didn’t have any such plans for now to file for an XRP-based ETF application. The denial by BlackRock caused the price of XRP to fall promptly, and the market saw a 12% drop in XRP’s value. Hogan also pointed out that to cause a stir in the market, such misleading stories and news can be created with just $500, so the crypto community should always verify first before jumping onto the bandwagon of such false news and creating false hopes for everyone else.
To prevent others from believing in such sham news, Hogan also explained the methodology followed by scammers to raise awareness regarding how they can manipulate the system with just two documents and a small fee. The desired result of achieving legitimacy for a piece of news can come to fruition if scammers create fake trust on state websites. He also made deductions that scammers carried out a strategy where they spread fake news just to push the price of the XRP token upward. They bought low before they published the information, and when the price got inflated to at least $0.75, they sold high, so you can imagine the profit they must have made in this process.
Bloomberg ETF analyst Eric Balchunas also came to the rescue when he confirmed the news of BlackRock ETF application filing or an XRP-based ETF was false and didn’t have any basis for it. However, the damage was done as before the news was falsified regarding the application filing, XRP saw a big surge in its price within minutes. When it came crashing down, many people found themselves to be on the wrong side of the spectrum. They bought high and were later seeing the price of the token falling.
The alleged filing seemed to be the work of someone impersonating BlackRock’s managing director, Daniel Schwieger.
This news is another reminder to the crypto community about how they should not believe every word they hear and should verify it from reputable sources before taking any action on it.
