BlackRock Denies Acquisition Rumors

News about BlackRock buying Voyager Digital turned out to be a false rumor; but perhaps only for now.

News About A Possible Acquisition

Rumors recently swirled around the financial world, suggesting that BlackRock, one of the world’s largest asset management firms, was on the verge of acquiring Voyager Digital, a prominent cryptocurrency trading platform. However, these rumors turned out to be nothing more than baseless speculation.

Official Denial by BlackRock

In an effort to clarify the situation, crypto.news reached out to BlackRock for confirmation. Carolyn Vadino, BlackRock’s Managing Director of Corporate Communication, unequivocally dismissed the rumors, stating that the press release regarding the supposed acquisition was entirely false.

Manipulative ‘Pumping’ Tactics Revealed

According to Colin Wu, a well-known Chinese crypto reporter, the dissemination of these rumors as “news” likely had a more sinister intent. It appeared that these rumors were strategically designed to artificially inflate the value of Voyager’s native cryptocurrency token, VGX, employing a tactic known as “pumping.” What made matters worse was the fact that this misinformation found its way onto the reputable Associated Press (AP) website, further amplifying the confusion and potential harm caused by such deceptive practices.

Questionable Source Uncovered

Colin Wu’s investigation led to the discovery that the misleading press release could be traced back to a solitary Chinese social media account with just one follower, casting significant doubt on the credibility of the claims.

Someone created fake news that BlackRock plans to acquire Voyager Digital to pump tokens. The Associated Press website even published it with paid content. The social media source marked in the press release is a Chinese account with only one fan. VGX has gained 8% in the last 24… pic.twitter.com/ypLSeuTn7r

— Wu Blockchain (@WuBlockchain) September 9, 2023

Voyager Digital’s Price Swings

In the immediate aftermath of the false news report, Voyager Digital’s native token, VGX, experienced a rapid 8% increase in value within a 24-hour timeframe, a testament to the influence of fabricated news within the volatile cryptocurrency markets. However, it’s essential to note that VGX’s value was later corrected, experiencing a 2.8% decrease. Despite this short-term dip, VGX still managed to maintain a 17.7% increase over a seven-day period and an 18% rise over a two-week period, according to data from CoinGecko.

BlackRock’s Growing Crypto Interest

While the acquisition rumors proved false, it’s worth mentioning that BlackRock, with assets totaling a staggering $9.4 trillion, has made no secret of its burgeoning interest in the cryptocurrency sector. The firm recently submitted an application to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin (BTC) exchange-traded fund (ETF). However, the SEC postponed its decision on this application until October 17, a decision that also affects applications from other notable firms like Wisdom Tree, Bitwise, Invesco, Ark Invest, and VanEck.

BlackRock’s CEO claims, “#Bitcoin    is set to reshape the financial landscape.”

Yet, you doubt they are buying?#BTC#Blackrock pic.twitter.com/GZScXbJaKU

— Malik Sulman (@sulmanfarmos) September 10, 2023

Beware of Deceptive News in Crypto

This episode serves as a stark reminder of the importance of discerning between real and fabricated news in the cryptocurrency realm. It underscores the necessity for investors to remain vigilant and make informed decisions based on reliable sources and thorough research. In a world where information spreads rapidly and market vulnerabilities abound, caution is paramount to protect financial interests.