The SEC's false news about spot ETFs has caused market fluctuations; is it essentially due to users being too eager in a bear market?
The amusing yet frustrating black swan event in the cryptocurrency world: Fake news posted by an "intern" caused significant losses in the market.Author: DeMan
On October 16, Cointelegraph shook the cryptocurrency world by claiming that the U.S. Securities and Exchange Commission had greenlit BlackRock's iShares Bitcoin Spot ETF.
Message released by Cointelegraph
However, this news was quickly questioned by Bloomberg ETF analyst James Seyffart on social media, stating that there was currently no evidence to support this claim.
In fact, as more sources came forward to clarify, the truth gradually emerged. The latest information from Bloomberg terminals indicated that BlackRock was still waiting for the SEC's review results on its Bitcoin Spot ETF application. Cointelegraph also swiftly responded by deleting the erroneous tweet it had previously published.
U.S. SEC: Information circulating online is unreliable; the SEC's official statements are the best source of information
So how did this fake news incident occur? Cointelegraph later provided a detailed explanation.
It turned out that its editorial team, after receiving a Telegram alert about the rumor, rushed to publish the news without sufficient verification in order to respond quickly to the market. This misleading news lead actually stemmed from an unverified screenshot provided by a user, who claimed that the screenshot originated from a Bloomberg terminal.
A piece of fake news triggers market frenzy, leading to huge asset price fluctuations
The unverified bombshell news released by Cointelegraph instantly stirred up huge waves in the digital currency market. Although the authenticity of the news had not been confirmed, the market reacted swiftly. The trading price of Bitcoin surged from $28,000 to over $30,000 in less than half an hour, marking the first time in nearly three months that it broke the $30,000 threshold. From a low of $27,000 in the Asian market's early trading, Bitcoin skyrocketed over $3,000, an increase of more than 10%.
The impact of this news was evident, as Cointelegraph's tweet reached nearly 1.5 million views in less than half an hour. Bitcoin, with a market capitalization of $550 billion, broke through several key integer levels, once again standing above the $30,000 mark, as the market seemed to be welcoming the return of a bull market.
Various debunking messages emerged in response to the incident
However, as a wave of debunking messages spread, Bitcoin's price began to plummet rapidly. Within just half an hour, it fell from the $30,000 high to below $28,000, a drop of over $2,000, exceeding 7%. Although the price later slightly rebounded to $28,000, its increase over the past 24 hours had narrowed to below 5%. This market frenzy triggered by a piece of fake news ended in about 10 minutes.
Even more astonishingly, during this brief 10-minute period, nearly $100 million was lost in the market due to this seven-word piece of fake news. Among them, short positions faced liquidations of up to $72 million, while long positions faced liquidations of $26 million. In this turmoil, there seemed to be no real winners.
The market and users pay a painful price for fake news, and Cointelegraph cannot escape blame
The digital currency field has always been a frontline battlefield for information dissemination, where fake news is as common as floating weeds. This industry, closely tied to capital, is often shrouded by various false reports, ranging from "a certain big shot encountered misfortune" to "a certain project received massive funding." However, despite the numerous reports, their impact on the industry has remained within a controllable range. Yet, Cointelegraph, as a reputable and trusted media organization, delivered a highly anticipated message in extremely formal language, which turned out to be incorrect, resulting in unprecedented repercussions.
A Bitcoin Spot ETF is not just a financial instrument; it is a turning point in the digital currency field. If it is approved and officially listed in the U.S., it will signify that U.S. regulators have formally accepted Bitcoin as a legitimate financial asset, greatly enhancing Bitcoin's global influence.
Therefore, Cointelegraph's release of unverified information at such a decisive moment reflects its carelessness and lack of depth in news reporting. This is not only a betrayal of its loyal readers but also a dereliction of duty to the entire cryptocurrency industry. In this era of rapid information flow, every media outlet should be acutely aware of its responsibility to ensure that every piece of information published is true and reliable, in order to maintain market stability and public trust.
In the digital currency field, the authenticity and accuracy of information are crucial for market stability and investor confidence. As a leading media outlet in this field, every report from Cointelegraph is seen as a barometer for the industry. However, when we delve into its recent fake news incident, a Cointelegraph that is completely different from our previous perception emerges: careless, irresponsible, and even somewhat frivolous.
Loss of credibility: For news media, credibility is its most valuable asset. However, by publishing unverified information, Cointelegraph has severely damaged its credibility. In this age of information overload, the public's desire for real and accurate news is stronger than ever. This mistake by Cointelegraph is undoubtedly a betrayal of its loyal readers.
Market chaos: Due to Cointelegraph's false reporting, the Bitcoin market experienced unprecedented turbulence. This was not just a numerical change, but the actual losses of countless investors, whose confidence and expectations were severely impacted.
Careless attitude: As a professional news organization, Cointelegraph should rigorously verify every piece of news. However, this incident revealed its carelessness and lack of scrutiny in news reporting.
Impact on the industry: The cryptocurrency industry is still growing and needs positive, truthful reporting to help the public understand and accept it. Cointelegraph's mistake may lead to public misunderstandings and biases against the entire industry.
Lack of social responsibility: Every media outlet should be clear about its social responsibility, ensuring that every piece of news published is true and reliable. However, Cointelegraph's mistake shows its negligence in this regard.
Cointelegraph's statement regarding the incident published on the platform
In summary, Cointelegraph's mistake is not only a failure of responsibility towards itself but also towards the entire cryptocurrency industry. This incident serves as a wake-up call for other media outlets, reminding them to maintain a rigorous and responsible attitude in news reporting.
The lesson from this blunder is extremely profound; cryptocurrency practitioners need to reflect collectively
In the digital currency field, every piece of news and information can be like a flap of a butterfly's wings, potentially triggering a market hurricane. Cointelegraph, as the leader in this field, has every report regarded as a golden rule by countless investors, researchers, and market observers. However, its recent careless behavior has revealed a different side, one that could have far-reaching impacts on the entire market due to negligence, recklessness, or other reasons.
This is not just a media mistake; it is a significant blow to the entire cryptocurrency field. In this industry, trust is the most valuable asset. Whenever false reports emerge, they can undermine that trust, causing investors to doubt the entire industry and potentially leading to large-scale capital withdrawals. Cointelegraph's mistake not only damages its own reputation but could also undermine the confidence of the entire industry.
Furthermore, this incident provides a valuable lesson for other media and industry participants. In this age of information explosion, real and accurate reporting is more important than ever. Every media outlet and industry participant should deeply reflect to ensure that their actions and decisions are based on real and accurate information, rather than on speculation, assumptions, or other uncertain factors.
Overall, Cointelegraph's mistake serves as a warning, reminding all of us that in any field, we must always pursue and respect real and accurate information, ensuring that every decision and action is based on facts and real data, rather than on speculation or other uncertain factors.
