The validator further revealed that the ticker and name used for the scam token are not unique on the XRP Ledger.
Following the announcement by the Ripple team about the upcoming launch of the Ripple stablecoin, some bad actors are already taking advantage of it to perpetuate malicious activity, as a fake token has surfaced on the XRP Ledger, which has drawn the attention of industry experts.
In an update, Ripple introduced the upcoming stablecoin Ripple USD (RLUSD), which is pegged at 1:1 with the United States dollar and stated it would be released before the end of the year. However, malicious actors are already scamming people using the yet-to-launch stablecoin.
Industry Experts Caution against Fraudulent Schemes
In a post on X by Vet, a validator of the XRP Ledger dUNL, a warning was issued to the public stating clearly that the official RLUSD stablecoin is not yet available, advising users not to engage with fake accounts but rather remain vigilant against any scams. The operator said:
“Scammers are taking advantage of you if you don’t stay vigilant.”
The validator further revealed that the ticker and name used for the scam token are not unique on the XRP Ledger. Hence, users should be able to easily identify the bad actors as only the issuer account is unique.
On the XRP Ledger ticker and name is not unique, same on ETH, Solana you name it.
Only the issuer account is unique, if the issuer e.g Ripple is coming out and says "this is our account for RLUSD" you know its real. Else it's a fake RLUSD, same for any other token.
Simple! https://t.co/3FveKs6Xgx— Vet 🏴☠️ (@Vet_X0) June 18, 2024
Steps to Verify Authenticity of Ripple Stablecoin Offerings
To avoid falling victim to such scams, a distributed ledger (DLT) operator, Krippenreiter on X, provided some recommendations. The user suggested checking the “r-address” using any XRPL-based explorer and thoroughly examining the account’s ancestry. Additionally, users are advised to verify the authenticity of the stablecoin by looking for official press releases from Ripple and RippleX, the company’s developer arm.
Krippenreiter also explained that verifying if the created stablecoin matches the required practices stated on the XRPL webpage is another way to avoid scams, stating that the original RLUSD could input an Authorized Trust Line (Require Auth) to “comply with local regulations.
Ripple stablecoin has been a hot topic within the crypto community for weeks. The excitement about the upcoming Ripple stablecoin among Crypto investors is understandable, as its release can improve liquidity and increase the price of the XRP coin itself. However, users must conduct due diligence and remain vigilant, as fraudsters would want to take advantage of the opportunity to conduct the illicit activity.
The President of Ripple Monica Long is positive about the coming stablecoin because she believes the market is still in its early stages. She stated the market was valued at $160 million and could grow to around $3 trillion in a few years, making it obvious that the coming Ripple stablecoin has a major share of the market to claim.
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