Could XRP Whales Crash Markets? ETF Filing Sounds Alarm
The post Could XRP Whales Crash Markets? ETF Filing Sounds Alarm appeared on BitcoinEthereumNews.com.
The new Cyber Hornet XRP ETF filing puts the focus on risk of manipulation by whales, which created a new wave of concern regarding the financial stability of the market and the investment safety of investors. The issue of whale manipulation in the XRP market has been highlighted in a recent filing with the U.S. Securities and Exchange Commission (SEC) of an ETF. The prospectus of Cyber Hornet S&P500/XRP ETF contends that big XRP investors (whales) are a formidable market player because they have the power to move the price with their huge transactions. This is an institutional acknowledgment that is not common in the industry, with the majority of individuals appearing to reject the variability of XRP pricing to market and speculatory pressures. Source – X According to Bill Morgan, a lawyer who was monitoring the filing, the fact that an ETF applicant openly acknowledged this risk was important. He added that in the case that these risks are present, investors must be aware of them so they can make a well-informed decision. Whale Control Casts Market Stability doubts. The ETF prospectus uses structural risks associated with the structure of XRP. As opposed to Bitcoin or Ethereum, XRP was fully minted at its inception, and there is no production of new coins to keep up with the demand. There are no mining or staking rewards which means that the validators do not have incentives based on new supply. These characteristics add to liquidity issues, and XRP is more susceptible to strong price fluctuations due to the actions of whales. A small number of people own a significant percentage of XRP and therefore their selling decisions can greatly influence the prices in the market. This brings about issues of price manipulation that can make the market less stable and more…
