Scammers have begun exploiting the hype surrounding the planned launch of Ripple’s stablecoin, circulating a counterfeit Ripple USD (RLUSD) token on the XRP Ledger (XRPL). The fraudulent activity occurs before the planned publication of the Official RLUSD, ready to compete with strong competitors such as Tether and Circle in the stablecoin market. Ripple President Monica Long has suggested that the stablecoin’s launch could take place later in 2024, following its initial announcement in April this year.
Ripple Stablecoin not launched yet
Krippenreiter, renowned member of the XRP community, Underlines the urgency of the situation through a post on social media platform I also found an AMM pool that had already attracted a few victims. He further outlined the key steps for users to validate the authenticity of RLUSD tokens on XRPL.
To help users identify real RLUSD tokens, Krippenreiter suggested several verification methods:
- Account ancestry: Users should examine the issuer’s “r address” using any XRPL-based explorer to trace links to early Ripple accounts.
- Official communications: Checking against official press releases on the Ripple and RippleX websites is crucial.
- Compliance with XRPL standards: Check if the stablecoin adheres to the best practices described on xrpl.org, including the management of the issuer’s wallets.
- Authorization requirements: Genuine RLUSD issuing accounts should implement “Require Authentication” settings to establish authorized trustlines, consistent with regulatory standards.
- Multi-signature security: A legitimate issuing account would likely be secure with a multi-signature setup.
Wietse Wind, founder of XRPL Labs, also voiced concerns about misleading tokens. “I’m seeing the first screenshots of people thinking RLUSD has already been issued on the XRP Ledger. It was NOT delivered. These are fake tokens issued by scammers trying to sell worthless tokens. active on the DEX or via AMM. Don’t commit,” he advised via X.
Adding to the comment, Mayukha Vadari, senior software engineer at RippleX, confirmed, “Ripple has not yet launched its RLUSD stablecoin.” Respond to criticism of the company first announcements About the stablecoin, Vadari noted: “In my opinion, you have to balance this by telling people what to expect – you will have a risk of scam no matter what, even after launch or before the announcement by guessing what the ticker will be.
Further warnings were issued by Vet, the operator of UNL’s XRP Ledger. He emphasized the importance of vigilance, saying on X: “Scammers will take advantage of you if you don’t stay vigilant. » Vet also reminded users that only the issuing account is unique and to verify that the product is directly offered by Ripple to avoid scams.
At press time, XRP was trading at $0.50.
Featured image created with DALL·E, chart from TradingView.com
