The XRP Ledger, ticker symbols, and names are not unique, making it easy for scammers to create a fake Ripple’s USD-backed stablecoin, RLUSD, ahead of its launch.
Vet, a validator of the XRP Ledger dUNL, has warned that the official RLUSD stablecoin is not yet available. He stressed that people need to be very careful. “Scammers are taking advantage of you if you don’t stay vigilant,” Vet tweeted.
On the XRP Ledger ticker and name is not unique, same on ETH, Solana you name it.
Only the issuer account is unique, if the issuer e.g Ripple is coming out and says "this is our account for RLUSD" you know its real. Else it's a fake RLUSD, same for any other token.
Simple! https://t.co/3FveKs6Xgx— Vet 🏴☠️ (@Vet_X0) June 18, 2024
Scammers are creating a fake Ripple USD (RLUSD) token on the XRP Ledger ahead of Ripple’s launch of its own U.S. dollar stablecoin. This follows Ripple Labs’ June 11 announcement of its acquisition of Standard Custody, a digital asset management firm, as part of its efforts to expand the tokenization of real-world assets and innovate in digital finance.
Ripple’s Security Measures and Innovations
Vet explained that on the XRP Ledger, ticker symbols and names are not unique, making it easy for fraudsters to deceive users. He emphasized that only the issuer account is unique, and users should ensure the product is directly from Ripple.
DLT expert Krippenreiter recommends checking the “r-address” using an XRPL-based explorer and examining the account’s history to avoid falling for such scams. He advised users to look for official press releases from Ripple and RippleX, the company’s developer arm, to confirm the authenticity of a stablecoin. Official sources are crucial in verifying whether a stablecoin is genuine or fake.
XRPScan, a leading XRPL explorer, has flagged an issuer of the fake RLUSD stablecoin as suspicious. It was noted that this account has already amassed a significant amount of XRP by trading the fake token on the decentralized exchange (DEX) and automated market maker (AMM). This highlights the importance of being cautious and using reliable tools to check the validity of digital assets.
A recent report revealed that Ripple expects the market for institutional crypto custody to grow significantly. The market is projected to reach $10 trillion by 2030 as more banks start offering digital asset services to their customers. Ripple aims to revolutionize the financial industry with advanced digital asset management and tokenization. They are determined to make financial transactions more efficient and secure with their cutting-edge technology and innovative solutions.
