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  • The R Roundup: Fake ETF News Erupts $XRP Maxis 🥸 - Issue #115

The R Roundup: Fake ETF News Erupts $XRP Maxis 🥸 - Issue #115

Issue #115 : Web 3 News Headlines Of The Week

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The R Roundup
November 19, 2023

The R Roundup: Fake ETF News Erupts $XRP Maxis 🥸 - Issue #115

In a recent incident that rocked the cryptocurrency market, a fabricated regulatory filing falsely claimed that BlackRock (BLK) was venturing into the creation of an XRP exchange-traded fund (ETF).

The deceptive document caused a momentary surge in XRP's value, propelling it over 10%, only to witness a swift retreat to its pre-announcement price of approximately 65 cents.

BlackRock swiftly dismissed the misleading filing, clarifying that it had no intentions of launching an XRP ETF. The asset management giant had previously submitted filings with the U.S. Securities and Exchange Commission (SEC) for spot bitcoin and ether ETFs. The bogus filing closely mirrored the legitimate paperwork submitted by BlackRock in the past, exploiting Delaware's corporate registration process.

Despite initial speculation fueled by media outlets like Bloomberg and The Block, knowledgeable observers cast doubt on BlackRock's involvement, citing the company's risk-averse stance in the crypto space.

Disney Onboards The NFT Hype Train📺

Dapper Labs, the creative force behind NBA Top Shot, is diversifying its NFT offerings by introducing Disney Pinnacle, an officially licensed NFT collectibles platform in collaboration with entertainment giant Disney.

Breaking away from its sports-centric focus, Dapper Labs is leveraging the Flow blockchain, known for hosting NBA Top Shot and NFL All Day, to mint digital collectibles inspired by Disney's iconic pins traded at theme parks.

Disney Pinnacle will feature NFTs representing beloved characters from Disney, Pixar, and Star Wars, including figures like Buzz Lightyear, Woody, Disney Princesses, and Darth Vader. Dapper Labs CEO Roham Gharegozlou emphasized the platform's mobile-first design, a departure from Top Shot's initial web-centric approach. Gharegozlou described Disney Pinnacle as a well-balanced ecosystem, catering to both casual fans and avid collectors with a range of accessibility options and limited edition assets.

The platform, now open for waitlist sign-ups, will undergo beta testing before a full launch, although no specific timeline has been disclosed.

dYdX Insurance Fund $9m Fumble🚨

Decentralized exchange dYdX faced a substantial setback as its insurance fund absorbed a $9 million blow, equivalent to 40% of the fund's total, following a sharp 40% decline in the price of Yearn Finance (YFI).

The platform clarified that the incident, marked by liquidations in the YFI market, did not impact user funds. In an official statement, dYdX reassured users that its team is actively investigating the situation, with the CEO, Antonio Juliano, labeling it a "pretty clearly a targeted attack against dYdX."

While the insurance fund sustained a notable hit, dYdX emphasized its continued robustness, with $13.5 million still in reserve. The platform clarified that the insurance fund, responsible for mitigating negative balances, operates under centralized management, with the dYdX team directly overseeing deposits and withdrawals.

Juliano further detailed the occurrence as involving "market manipulation of the entire $YFI market" and underscored ongoing collaborative investigations with multiple partners. Despite the severity of the incident, dYdX did not immediately respond to requests for additional comments.

In response to potential future threats, dYdX proactively increased margin requirements for "less liquid" markets such as EOS, RUNE, and AAVE, signaling a commitment to fortifying risk management measures on its v3 platform.

Ethereum ETFs…Here We Go 💎

BlackRock, the world's largest asset manager, has formally submitted a request to the United States Securities and Exchange Commission (SEC) for the establishment of a spot Ethereum exchange-traded fund (ETF).

This move follows BlackRock's prior filing for a spot Bitcoin ETF in June, which is currently awaiting regulatory approval.

The newly proposed ETF, named iShares Ethereum Trust, is designed to mirror the overall performance of the Ethereum cryptocurrency, as outlined in the recently filed Form S-1 with the SEC. Under the iShares brand, BlackRock aims to provide investors with exposure to the price movements of ether.

This development comes on the heels of BlackRock's recent registration of the iShares Ethereum Trust entity with the Delaware Department of State Division of Corporations. Nasdaq's subsequent filing for the proposed ETF further confirmed BlackRock's active pursuit of a spot ether ETF.

For the custody of its proposed spot Ether ETF, BlackRock has opted for Coinbase Custody Trust Company. The benchmark for the ETF will be the CME CF Bitcoin Reference Rate, administered by CF Benchmarks, a subsidiary of Kraken. These choices mirror those made for BlackRock's proposed spot Bitcoin ETF.

Upon the news of BlackRock's official filing, the price of ether (ETH) experienced a nearly 2% surge, reaching around $2,080. This move signifies the growing interest and potential market impact of institutional players entering the Ethereum ETF space.

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