XRP Community Hit With Critical Warning — Here’s What It Concerns

  u.today 4 h

The XRP community has been issued a critical warning. As Ripple’s new stablecoin RLUSD becomes available for testing, XRP Scan, an XRP Ledger explorer, has urged the community to be cautious of scams purporting to be RLUSD issuers.

This cautionary message follows an earlier major warning from Ripple, highlighting the rise of scams attempting to exploit its historic victory against the SEC.

In a victory for Ripple and the entire crypto industry, the court slashed the SEC’s demand by about 94%, ordering Ripple to pay $125 million in civil penalties, ending the nearly four-year legal battle.

As the crypto community celebrates, this win has also attracted bad actors looking to capitalize on the positive sentiment and increased interest in XRP.

In a tweet, Ripple warned: «And once again with Wednesday’s historic victory, we’ve seen an uptick in scams. Please beware of scam Ripple accounts, fake executive accounts or others promoting XRP Giveaways or XRP Airdrops. Ripple and its executives will never ask you to send funds anywhere.»

Warnings issued as RLUSD stablecoin enters beta testing

Ripple recently shared that Ripple USD stablecoin (RLUSD) is now available for testing in private beta on XRP Ledger and Ethereum mainnet, triggering excitement in the XRP and broader crypto community.

RLUSD wallet is now available on the XRPL mainnet for beta testing: https://t.co/HK5zh3PQTJ

As always, please be cautious of scams purporting to be RLUSD issuers. Always use your favorite explorer to verify accounts before trusting them. https://t.co/iVJrHBHC0g pic.twitter.com/efEXARyFGm

— XRPScan (@xrpscan) August 9, 2024

The latest move, according to Ripple, marks a significant milestone and a step closer to adding more high-quality assets to XRP Ledger, creating new opportunities, liquidity and institutional use cases for users, developers and applications.

RLUSD will be pegged to the U.S. dollar (USD) and fully backed by U.S. dollar deposits, short-term U.S. government treasuries and other cash equivalents. A third-party accounting firm will audit these reserve assets, and Ripple will publish attestations monthly.

Amid the excitement, Ripple warns the crypto community to be cautious of scammers who claim to have or can distribute Ripple USD as the stablecoin has yet to receive regulatory approval and hence is not available for purchase or trading.

In a similar warning, XRP Scan, an XRP Ledger explorer, urges the XRP community to be cautious of scams purporting to be RLUSD issuers and to verify accounts before trusting them.

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