Crypto investors have been warned to stay safe as Ripple’s Stablecoin launch attracts scammers’ unwanted attention.
A fake token has been discovered on the XRP Ledger, which has caught the attention of industry experts, and some malicious actors are already exploiting the announcement by the Ripple team about the impending launch of the Ripple stablecoin to perpetuate malicious activity.
Ripple introduced the upcoming stablecoin Ripple USD (RLUSD) in an update. It is pegged at 1:1 with the United States dollar and is expected to be distributed before the end of the year. Nevertheless, malicious actors are already exploiting the yet-to-be-launched stablecoin to defraud individuals.
Industry professionals advise against fraudulent schemes
A warning was issued to the public in a post on X by Vet, a validator of the XRP Ledger dUNL, stating plainly that the official RLUSD stablecoin is not yet available. The post advised users to remain vigilant against scams and not engage with fake accounts. The operator stated:
“Scammers are taking advantage of you if you don’t stay vigilant.”
The validator also disclosed that the ticker and identity of the scam token are not distinctive on the XRP Ledger. Therefore, users should be able to effortlessly identify the evil actors, as the issuer account is the only distinctive one.
Procedures for Validating Ripple Stablecoin Offerings
Krippenreiter, a distributed ledger (DLT) operator on X, advised how to prevent falling victim to such schemes. The user recommended that the “r-address” be verified using any XRPL-based explorer and that the account’s ancestry be extensively examined. Furthermore, it is recommended that users verify the legitimacy of the stablecoin by consulting official press releases from Ripple and RippleX, the company’s developer arm.
Krippenreiter also clarified that another method of preventing fraud is to confirm that the stablecoin that has been generated adheres to the necessary practices outlined on the XRPL webpage. He also mentioned that the original RLUSD could input an Authorized Trust Line (Require Auth) to “comply with local regulations.”
The Ripple stablecoin has been a topic of discussion in the crypto community for several weeks. It is comprehensible that Crypto investors are enthusiastic about the forthcoming Ripple stablecoin, as its release has the potential to enhance liquidity and elevate the value of the XRP coin. Nevertheless, users must exercise caution and vigilance, as fraudsters may exploit the opportunity to engage in illicit activities.
Monica Long, the President of Ripple, is optimistic about the forthcoming stablecoin, as she believes the market is still in its infancy. She stated that the market was valued at $160 million and could increase to approximately $3 trillion in the next few years. Consequently, the forthcoming Ripple stablecoin has a significant portion of the market to claim.