Bitfinex Responds to Attack Rumors, Tries to Shut Down XRP Rumors

This article is brief:

-The crypto community speculates on XRP supply shifts, raising concerns about market impact and liquidity control.

-Bitfinex CTO Paolo Ardoino dismissed rumors of an attack and assured followers of the exchange’s security measures.

-Investors are concerned about a single wallet holding a large portion of the crypto-asset supply, as it suggests centralization.

A now-deleted post on X sparked widespread speculation in the cryptocurrency community suggesting that roughly half of XRP’s total supply was being moved to separate exchanges via single transactions, but the situation doesn’t appear to be quite as initially thought.

Well-known cryptocurrency commentator ‘The Wolf of Full Street’ has raised concerns, mainly because the transaction appears to be originating from a single wallet. This situation poses a risk to any asset, as one person having significant control over the liquidity of an asset could be potentially problematic.

Bitfinex CTO Clarifies XRP Rumors

Bitfinex CTO Paolo Ardoino confirmed to his 217,100 followers on X (formerly Twitter) that the cryptocurrency exchange was under attack.

“An attempt was made to attack Bitfinex through the Partial Payment Vulnerability, which failed because Bitfinex correctly handled the “delivered_amount” data field.” ” Ethereum ETC Miner Asic

There have been numerous reports circulating online that a wallet sent a huge transaction (almost 50% of all XRP supply) to the exchange in a single transaction, prompting him to do so.

It was originally discovered by Whale Alert. “The Wolf of Full Street” told his 932,500 followers, “This can’t be true.”

“XRP has about $54 billion in circulation. Almost half of that one transaction is from the same wallet.”

Investors holding crypto assets get worried when a single wallet takes up most of the supply. This is because it gives the holder significant power and control over the entire market.

The potential consequences of a holder selling all of these assets immediately could have a significant impact on the price of XRP.

As of this writing, the price of XRP is $0.59.

XRP price chart for 1 month. Source: BeInCrypto

Rumors of an XRP ETF in the Works

This is a major concern for the cryptocurrency community. This is due to speculation about whether an XRP exchange-traded fund (ETF) is likely to be approved. The U.S. SEC decided to approve 11 spot bitcoin ETFs last week.

On January 8, it was reported that Fidelity could be expected to launch an ETF product by April 2024, according to the report. In addition, the product could be approved before the end of 2024.  Litecoin DOGE Miner Asic

However, this isn’t the first time XRP has been hit with false news.

Last year, BlackRock’s submission of a fake XRP ETF sent the asset’s price soaring by 10%.