SEC Commissioner’s Fake Tweet About Bitcoin ETF Approval Immortalized on Blockchain
After U.S. Securities and Exchange Commissioner Gary Gensler confirmed that the Twitter account of the regulatory agency was compromised and used to falsely announce the approval of a spot Bitcoin ETF, someone archived Gensler’s response in an Ordinals Inscription.
Fake Tweet Causes Bitcoin Price Plunge
On Tuesday, the official SEC Twitter account announced that all thirteen spot Bitcoin ETFs had been approved when, in fact, none had been approved. The subsequent revelation that the tweet was fake sent the price of Bitcoin plunging from $47,680 to just above $45,500.
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Ordinals Inscriptions on the Bitcoin Blockchain
Over 53 million Ordinals inscriptions have been created since the protocol was introduced last January, with the Gensler tweet attributed to Restey being inscription 53,995,422.
Comparison to Ethereum NFTs
Ordinal inscriptions are often compared to Ethereum-based NFTs for the Bitcoin blockchain. Thanks to updates in the Bitcoin protocol like Taproot, enthusiasts have minted everything from images and text to video games like the original Doom. On Monday, Ninjalerts announced that a Super Nintendo Entertainment System emulator was inscribed on the Bitcoin blockchain.
No Confirmation of SEC Intern’s Involvement
While some speculate that an SEC “intern” sent the tweet by mistake, an agency spokesperson told Decrypt that the tweet was not made by the SEC or its staff.
The Future of Bitcoin ETFs
The fake tweet comes at a time when the financial world waits with bated breath to see if the SEC finally approves a spot Bitcoin ETF. Over 13 Bitcoin ETFs proposals-including from BlackRock, Fidelity, Bitwise, and VanEck-are waiting for the green light to trade. VanEck CEO Jan van Eck suggests that Bitcoin ETF trading could start as early as Thursday.
Reminder About Account Security
After the hack, the SEC chair took to Twitter to remind investors about the importance of securing their accounts. Gensler’s tweet on Tuesday echoed a post on Monday that warned investors about the risk of scams in cryptocurrency.
Hot Take: Fake Tweet Highlights Vulnerability of Social Media
The recent fake tweet incident involving the SEC Commissioner’s Twitter account highlights the vulnerability of social media platforms and the potential impact of false information on crypto markets. This incident caused a significant drop in Bitcoin’s price and serves as a reminder to investors about the risks associated with relying on social media for investment decisions. It also emphasizes the need for heightened security measures to protect against unauthorized access to official accounts. As the crypto industry awaits the approval of Bitcoin ETFs, incidents like these underscore the importance of verifying information from reliable sources before making investment choices.
