{"id":61784,"date":"2023-10-17T08:43:29","date_gmt":"2023-10-17T12:43:29","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=61784"},"modified":"2023-10-17T08:50:48","modified_gmt":"2023-10-17T12:50:48","slug":"crypto-whale-suffers-49k-wbtc-loss-on-fake-bitcoin-etf-news","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/crypto-whale-suffers-49k-wbtc-loss-on-fake-bitcoin-etf-news\/","title":{"rendered":"Crypto Whale Suffers $49K WBTC Loss on Fake Bitcoin ETF News"},"content":{"rendered":"\n

A crypto whale bought 20.5 Wrapped Bitcoin (WBTC) for 613,201 USDC after a false report that the SEC approved a spot Bitcoin ETF, only to sell them for 563,970 USDC in 10 minutes. The incident shows the impact of FOMO and misinformation on the crypto market.<\/p>\n\n\n\n

\"Crypto<\/figure>\n\n\n\n

A cryptocurrency whale suffered a huge loss of nearly $50,000<\/strong> after falling for a fake news report about a spot Bitcoin ETF<\/a> approval by the SEC. <\/p>\n\n\n\n

The investor bought 20.5<\/strong> Wrapped Bitcoin (WBTC)\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, a tokenized version of Bitcoin on the Ethereum blockchain, for 613,201 USDC,<\/strong> a stablecoin pegged to the US dollar. <\/p>\n\n\n\n

However, the investor realized the mistake and sold the WBTC for 563,970 USDC<\/strong> in just 10 minutes, losing 8%<\/strong> of the initial investment.<\/p>\n\n\n\n

FOMO: Whale purchases WBTC at a high price<\/h2>\n\n\n\n

The whale\u2019s costly blunder was triggered by a false report that the SEC had approved BlackRock\u2019s iShares spot Bitcoin ETF application, which would track the actual price of Bitcoin rather than futures contracts. <\/p>\n\n\n\n

The report was posted by Cointelegraph, a prominent crypto news outlet, on X (formerly Twitter) without verifying the source. <\/p>\n\n\n\n

The source turned out to be an unconfirmed screenshot from an X user who claimed it was from the Bloomberg Terminal.<\/p>\n\n\n\n

The false report sparked a buying frenzy among crypto investors, who feared missing out on a potential rally. <\/p>\n\n\n\n

The price of Bitcoin surged to nearly $30,000,<\/use><\/svg><\/span><\/a> its highest level since May. The whale apparently followed the crowd and bought WBTC at a premium price of $29,900 per token.<\/strong><\/p>\n\n\n\n

Reality check: Whale sells WBTC at a discount<\/h3>\n\n\n\n

The whale\u2019s euphoria was short-lived, as BlackRock soon clarified<\/use><\/svg><\/span><\/a> that the report was false and that there was no decision on its ETF application. <\/p>\n\n\n\n

The SEC also told The Wall Street Journal that it had no comment on the matter. The crypto market reacted swiftly and corrected itself, with Bitcoin dropping back to $28,000.<\/strong><\/p>\n\n\n\n

The whale must have sensed the trouble and decided to cut the losses by selling the WBTC at a lower price of $27,500 per token. <\/strong><\/p>\n\n\n\n

The whole transaction took only 10 minutes, but it resulted in a significant loss of $49,231.<\/strong><\/p>\n\n\n\n

\"Crypto
Source<\/use><\/svg><\/span><\/a><\/figcaption><\/figure>\n\n\n\n

Significance: The Crypto Market and the News Industry<\/h3>\n\n\n\n

This incident, which was detailed by Look On-Chain,<\/use><\/svg><\/span><\/a> a platform that provides on-chain data and analysis, illustrates the risks and challenges of trading in the crypto market. <\/p>\n\n\n\n

It shows how FOMO <\/strong>– the fear of missing out – can drive irrational and impulsive decisions that can backfire badly. <\/p>\n\n\n\n

It also shows how misinformation and fake news can greatly impact market sentiment and price movements.<\/p>\n\n\n\n

The incident also highlights the need for more caution and due diligence among crypto investors, especially when dealing with unverified sources and breaking news. <\/p>\n\n\n\n

It also underscores the need for more transparency and accountability among crypto news outlets, which should uphold high standards of fact-checking and editorial approval before publishing any news that could affect the market.<\/p>\n","protected":false},"excerpt":{"rendered":"

A crypto whale bought 20.5 Wrapped Bitcoin (WBTC) for 613,201 USDC after a false report that the SEC approved a spot Bitcoin ETF, only to sell them for 563,970 USDC in 10 minutes. The incident shows the impact of FOMO and misinformation on the crypto market. A cryptocurrency whale suffered a huge loss of nearly […]<\/p>\n","protected":false},"author":44,"featured_media":61794,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1613,9977,16779,10916],"class_list":["post-61784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin-etf","tag-crypto-whales","tag-fomo","tag-wbtc-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/10\/bitcoin-whale.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/61784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=61784"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/61784\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/61794"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=61784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=61784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=61784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}