Scammers have begun to exploit the hype around Ripple’s anticipated stablecoin launch, circulating a counterfeit Ripple USD (RLUSD) token on the XRP Ledger (XRPL). The fraudulent activity comes ahead of the expected release of the official RLUSD, set to compete with heavyweight contenders such as Tether and Circle in the stablecoin market. Ripple President Monica Long has suggested that the stablecoin’s launch could occur later in 2024, following its initial announcement in April of this year.
Ripple Stablecoin Is Not Launched Yet
Krippenreiter, a renowned member of the XRP community, highlighted the urgency of the situation through a post on the social media platform X: “There are several reposts circulating that promote the early issuance of RLUSD which is NOT true. I also found an AMM pool that had already attracted a few victims.” He further outlined key steps for users to validate the authenticity of RLUSD tokens on the XRPL.
To assist users in identifying genuine RLUSD tokens, Krippenreiter suggested several verification methods:
- Account Ancestry: Users should scrutinize the “r-address” of the issuer using any XRPL-based explorer to trace links back to early Ripple accounts.
- Official Communications: Verification against official press releases on Ripple and RippleX websites is crucial.
- Compliance with XRPL Standards: Checking if the stablecoin adheres to the best practices as outlined on xrpl.org, including the management of issuer’s wallets.
- Authorization Requirements: Genuine RLUSD issuing accounts are expected to implement “Require Auth” settings to establish authorized trust lines, aligning with regulatory standards.
- Multi-Signature Security: A legitimate issuing account would likely be secured through a multi-signature setup.
Wietse Wind, founder of XRPL Labs, also voiced concerns over the deceptive tokens. “I’m seeing the first screenshots from people believing RLUSD has already been issued on the XRP Ledger. It has NOT been issued. These are fake tokens issued by scammers trying to sell worthless assets on the DEX or through AMM. Do not engage,” he advised via X.
Adding to the commentary, Mayukha Vadari, Senior Software Engineer at RippleX, confirmed, “Ripple has yet to launch its RLUSD stablecoin.” Addressing the critique of the company’s early announcements about the stablecoin, Vadari noted, “IMO you have to balance it out with telling people what to expect – you’ll have the scam risk regardless, even post-launch, or pre-announcement with guesses of what the ticker will be.”
Further warnings were issued by Vet, the operator of the XRP Ledger dUNL. He emphasized the importance of vigilance, stating on X, “Scammers are taking advantage of you if you don’t stay vigilant.” Vet also reminded users that only the issuer account is unique and to verify that the product is directly offered by Ripple to avoid scams.
At press time, XRP traded at $0.50.
Featured image created with DALL·E, chart from TradingView.com
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