Bitfinex Addresses Attack Attempt, Dispels XRP Transfer Speculation

Following a post on X that has since been deleted, which fueled speculation within the cryptocurrency community about a significant transfer of nearly half of XRP’s total supply to a single exchange, it appears that the situation is not as alarming as initially perceived.

Renowned cryptocurrency commentator ‘Wolf of All Streets’ raised concerns, mainly due to the transaction seemingly originating from a single wallet, a situation that could pose risks for any asset by giving one individual substantial control over its liquidity.

Bitfinex’s Chief Technology Officer, Paolo Ardoino, clarified the XRP rumours, confirming to his 217,100 followers on X (formerly Twitter) that an attack was attempted on the cryptocurrency exchange. He explained that the attack failed because Bitfinex appropriately handles the ‘delivered_amount’ data field.

Ardoino’s response came after widespread reports online suggested a massive transaction, accounting for almost 50% of XRP’s entire supply, was sent from one wallet in a single transaction to the exchange. The original observation was made by Whale Alerts, prompting the Wolf of All Streets to express scepticism, stating that “this cannot be real” considering XRP’s circulating supply is around 54 billion.

Investors in crypto assets often worry when a single wallet holds a majority of the supply, as it grants significant power and control over the market. The potential impact on XRP’s price, if the holder was to sell all those assets at once, could be substantial.

As of the current publication, XRP’s price stands at $0.59.

The situation raises concerns for the crypto community, especially considering speculation about the potential approval of an XRP exchange-traded fund (ETF). The US SEC recently approved 11 spot Bitcoin ETFs, and there are predictions that Fidelity could launch an XRP ETF product by April 2024, with potential approval before the end of 2024.

It’s worth noting that XRP has previously been the target of false news, as seen last year when fake reports of an XRP ETF filing by BlackRock caused a 10% spike in the asset’s price.