$7M losses amid fake BlackRock XRP Trust filing, XRP price whipsawed

November 14, 2023 04:55 AM PST | By Invezz

$7M losses amid fake BlackRock XRP Trust filing, XRP price whipsawed — Image source: Invezz

False BlackRock XRP Trust filing

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
— Eric Balchunas (@EricBalchunas) November 13, 2023

Traders stung: $7.26 million losses in 24 hours

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

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.