Ripple Stablecoin Scam: Tips to Avoid Fake RLUSD Tokens

Scammers are targeting XRP Ledger (XRPL) users by creating a fake version of Ripple’s anticipated stablecoin, RLUSD. This counterfeit token has been circulating on the XRPL, exploiting the buzz surrounding Ripple’s official stablecoin launch.

Scammers Exploit Upcoming Ripple Stablecoin Launch

Ripple, the company behind the XRP cryptocurrency, is preparing to release its RLUSD stablecoin, expected later this year. However, scammers are seizing this opportunity to deceive unsuspecting users.

Vet, an operator of the XRPL dUNL, issued a warning on social media platform X, stating that the genuine RLUSD stablecoin has not been released yet. He emphasized that scammers can easily replicate the token’s name and ticker on the XRPL, making it crucial for users to verify the legitimacy of any RLUSD tokens they encounter.

How to Identify and Avoid Fake RLUSD Tokens

To safeguard against these scams, DLT expert Krippenreiter advises users to meticulously check the “r-address” associated with the token using any XRPL-based explorer. He also recommends reviewing the account’s history to ensure its authenticity. Additionally, users should look for official press releases from Ripple or its developer arm, RippleX, to confirm the legitimacy of any RLUSD tokens.

Also Read: How Deepfake Scammers Are Draining Millions from Crypto Users

XRPL Explorer Flags Suspicious Accounts

XRPScan, the leading XRPL explorer, has already flagged an issuer of the fraudulent RLUSD token as suspicious. The account in question has reportedly accumulated a significant amount of XRP by trading the fake token on decentralized exchanges (DEX) and automated market makers (AMM). This action serves as a critical reminder for users to remain vigilant and thoroughly verify token issuers on the XRPL.

Official RLUSD Stablecoin Expected in 2024

According to Monica Long, President of Ripple, the official RLUSD stablecoin is projected to launch in 2024. This announcement, initially made in April, has generated significant interest within the cryptocurrency community. Ripple aims to position RLUSD as a competitor to established stablecoins such as Tether and Circle. The RLUSD ticker was recently unveiled at the XRPL Apex 2024 event, further fueling anticipation for its release.