Scam alert: Fake Ripple USD tokens emerge ahead of official release

Scamsters are busy scouring ways to take advantage of Ripple’s stablecoin release by issuing an imitation version of the Ripple USD (RLUSD) token on the XRP Ledger.  

The yet-to-be-introduced RLUSD token will be shouldering its way forward through the big timers like Tether and Circle, falling within the stablecoin space. As per the President of Ripple, Monica Long, the deliverance will happen sometime towards the end of the year. 

Kripppenreiter, who is a respected figure amongst the XRP community, has shared the fact that,  as per his observation, various misleading posts are being shared, suggesting the timing of the release to be before it hits the market. In his opinion, the scarier part is individuals falling for the ruse. 

In this regard, he has come up with certain criteria for ascertaining its genuineness, such as its account history, as well as keeping an ear out for formal communique and its adherence with XRPL quality. Added to that is a close look at the criteria for authorization, as well as the multi-signature safety mechanism. 

The Founder of XRPL Labs, Wietse Wind, also aired his apprehensions regarding the imitation tokens and the individuals who believe in their authenticity. In his opinion, this will lead to widespread deception with multitudes of victims ending up losing their money. They will, in all probability, utilize DEX or AMM to sell the useless tokens. 

Advertisement

From the viewpoint of the Senior Software Engineer at RippleX, Mayukha Vadari, though several negative comments are being passed on the declaration by Ripple regarding the introduction of the token, there is no real safeguard against evil minds. The factor of creating imitations and circulating them is possible at any given time before or after their official release.

Harsh Chauhan

Harsh Chauhan is an experienced crypto journalist and editor at CryptoNewsZ. He was formerly an editor at various industries and has written extensively about Crypto, Blockchain, Web3, NFT and AI. Harsh holds a Bachelor of Business Administration degree with a focus on Marketing and a certification from the Blockchain Foundation Program. Through his writings, he hold the pulse of rapidly evolving crypto landscape, delivering timely updates and thought-provoking analysis. His commitment to providing value to readers is evident in every piece of content produced.

Related Articles

Back to top button