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Bitfinex Responds to Attack Attempt, Shuts Down XRP Rumors

2 mins
Updated by Kyle Baird
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In Brief

  • Crypto community speculates on XRP supply transfer, causing concerns about market impact and liquidity control.
  • Bitfinex CTO Paolo Ardoino dispels attack rumors, reassures followers about the exchange's security measures.
  • Investors worry about single wallets holding a significant portion of a crypto asset's supply, as this suggests centrazlization.
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After a now-deleted post on X sparked widespread speculation within the crypto community, suggesting that about half of XRP’s total supply was being moved in a single transaction to a lone exchange, it appears that the situation is not exactly as initially perceived.

The well-known cryptocurrency commentator ‘Wolf of All Streets’ raised concerns primarily due to the transaction’s appearance of originating from a single wallet. This situation poses a risk for any asset, as having one individual holding significant control over the liquidity of the asset can be potentially problematic.

Bitfinex CTO Sets the XRP Rumors Straight

Bitfinex chief technology officer Paolo Ardoino took to X (formerly Twitter) to confirm to his 217,100 followers that an attack was attempted on the cryptocurrency exchange.

“Someone attempted to attack Bitfinex via “Partial Payments Exploit”. Attack failed since Bitfinex properly handles ‘delivered_amount’ data field.”

He was prompted to do so after numerous reports were swirling online that a huge transaction, almost 50% of XRP’s entire supply, was sent by one wallet in a single transaction to the exchange.

It was originally spotted by Whale Alerts. The Wolf of All Streets told his 932,500 followers that “this cannot be real.”

“The circulating supply of XRP is roughly 54b. This is almost half of that. From one wallet. In one transaction.”

Investors holding crypto assets worry when a single wallet possesses the majority of the supply. This is because it grants the holder significant power and control over the entire market.

The potential consequences of the holder selling all those assets at once could have a substantial impact on the price of XRP.

At the time of publication, XRP’s price is $0.59.

XRP Price Chart 1 Month. Source: BeInCrypto
XRP Price Chart 1 Month. Source: BeInCrypto

Read more: How To Make Money With Cryptocurrency: Top 4 Ways In 2024

Rumors of an XRP ETF in the Works

This is a significant concern for the crypto community. This is because there is speculation over the potential for approval of an XRP exchange-traded fund (ETF). The US SEC made a decision to approve 11 spot Bitcoin ETFs last week.

On January 8, BeInCrypto reported that there are predictions that Fidelity could launch an ETF product by April 2024. Furthermore, it could potentially see a green light before the end of 2024.

However, this is not the first time XRP has been subject to false news.

Last year, news of a fake XRP ETF filing by BlackRock spiked the asset’s price by 10%

Read more: How To Evaluate Cryptocurrencies with On-Chain & Fundamental Analysis

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In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.