Bitrabo Editorial
Scammers are taking advantage of the excitement surrounding Ripple’s upcoming stablecoin debut by circulating a counterfeit Ripple USD (RLUSD) token on the XRP Ledger (XRPL). This illicit activity precedes the planned launch of the official RLUSD, which aims to rival established stablecoins like Tether and Circle. Ripple’s President Monica Long hinted at a potential 2024 release for the stablecoin after its initial announcement in April.
Ripple Stablecoin Not Yet Launched
A well-known member of the XRP community, Krippenreiter, raised the alarm about this issue on the social media platform X, cautioning users about misinformation regarding the early issuance of RLUSD. He also identified an AMM pool that had already ensnared a few unsuspecting victims. To help users authenticate RLUSD tokens on the XRPL, Krippenreiter outlined ways to verify their legitimacy.
Krippenreiter suggested the following methods for users to validate genuine RLUSD tokens:
- Account Origin: Users should examine the issuer’s “r-address” using an XRPL-based explorer to trace it back to early Ripple accounts.
- Official Sources: Cross-referencing with official statements on Ripple and RippleX websites is crucial.
- Adherence to XRPL Standards: Confirming if the stablecoin complies with the guidelines specified on xrpl.org, such as wallet management by the issuer.
- Authorization Standards: Legitimate RLUSD issuers are expected to implement “Require Auth” settings to establish authorized trust lines, aligning with regulatory requirements.
- Multi-Signature Protection: A genuine issuing account would likely utilize a multi-signature security setup.
Wietse Wind, the founder of XRPL Labs, also alerted users to the deceptive nature of these tokens, advising people not to engage with scammers attempting to peddle worthless assets on DEX or AMM platforms. Mayukha Vadari, a Senior Software Engineer at RippleX, confirmed that RLUSD had not been launched yet, emphasizing the need for caution and managing expectations regarding early announcements to mitigate scam risks.
Further cautions were issued by Vet, the operator of the XRP Ledger dUNL, urging users to remain vigilant against scammers. Vet stressed that only the issuer account is authentic, and individuals should verify that the product is directly from Ripple to avoid falling prey to scams.
As of the latest update, XRP was trading at $0.50.