Crypto Fake News: Misinformation Surrounding BlackRock ETFs and Roblox XRP Support

In the past week, we’ve witnessed two significant instances of fake news causing ripples in the crypto space. 

First, an erroneous report claimed that BlackRock Inc. had received the regulatory green light to launch a spot Bitcoin (BTC) exchange-traded fund (ETF). This false information sent the crypto market into a frenzy, briefly driving BTC’s price from $27,900 to $30,000.

Subsequently, the U.S. Securities and Exchange Commission (SEC) stepped in, issuing a warning about the unreliability of online information. 

Careful what you read on the internet. The best source of information about the SEC is the SEC.

— U.S. Securities and Exchange Commission (@SECGov) October 16, 2023

This incident shows the importance of verifying news sources in a digital realm often susceptible to rumors and speculation.

Roblox Denies XRP Integration Rumors

The second episode of misinformation came in the form of rumors surrounding Roblox, a prominent gaming platform, and Ripple’s XRP cryptocurrency. Reports started circulating, suggesting that Ripple’s XRP was joining forces with Roblox to introduce XRP as a new payment method for in-game purchases.

However, Roblox swiftly denied these claims, labeling the news “inaccurate.” A spokesperson from Roblox confirmed that the gaming platform supports payment methods such as credit cards, debit cards, gift cards, PayPal, Venmo, Klarna, CVS Pharmacy payments, and Paysafecard for its in-game transactions. Cryptocurrencies like Bitcoin and XRP were not part of this payment ecosystem.

The initial spark for these rumors appeared to be a tweet from BitPay, a crypto payment processor, which claimed that XRP users could use the token for Xsolla payments in supported games, including Roblox. However, BitPay later deleted the tweet, clarifying that the information was inaccurate.

“Unfortunately, we’ve seen quite a few articles on this and the info is inaccurate.” the tweet said.

The confusion deepened when prominent crypto investor Scott Melker tweeted that Roblox was partnering with BitPay to introduce XRP support, hinting at a more favorable legal climate for the cryptocurrency. Roblox reiterated that it had no such partnership with BitPay regarding XRP.

ROBLOX + RIPPLE?

MAJOR GAMING COMPANY INTEGRATES XRP

The integration of $XRP as a payment method by BitPay and Xsolla serves as a pivotal moment in the crypto and gaming industries. It not only enhances XRP's standing in these sectors but also deepens the existing relationship… pic.twitter.com/UbQbNZRVIG

— The Wolf Of All Streets (@scottmelker) October 17, 2023

Fake News Plagues the Crypto Space

This is not the first incident of fake news causing turmoil in the crypto industry. In 2021, the price of Litecoin experienced a sudden 30% surge due to a fake news release that claimed Walmart, the retail giant, would accept Litecoin as a payment method. 

Similarly, in the same year, another fake news story circulated, alleging that the SEC had dismissed a lawsuit against Ripple. In each case, the companies involved distanced themselves from the fake news, emphasizing its fraudulent nature.

These events shed light on the impact of fake news in the crypto market. Cryptocurrencies are highly susceptible to news, rumors, and other external factors. Even the slightest hint of a significant development can trigger a cascade of buying or selling, significantly influencing market prices.

The false claim regarding BlackRock’s spot Bitcoin ETF, for example, prompted the liquidation of over $57 million worth of Bitcoin long positions in a mere 24 hours. 

While the erroneous post was deleted within 30 minutes, it was erroneously reported as fact by prominent crypto news outlet Cointelegraph, leading to a surge in trading activities.

Though denied promptly in the case of Roblox and XRP, the rumors still had a significant impact. Such incidents highlight the need for discernment and fact-checking in the crypto community, as misinformation can lead to market volatility and potential financial losses.