XRP Community Members Warned of New Scam Surrounding Forthcoming RLUSD Stablecoin Launch

Members of the XRP community are now at risk of a new scam surrounding the forthcoming launch of the Ripple USD (RLUSD) stablecoin.

Members of the XRP community are being warned about a new scam that is circulating ahead of the upcoming launch of the Ripple USD (RLUSD) stablecoin.

Various reports on X have claimed that 1 billion RLUSD tokens have been minted, with some suggesting that this evidence can be found on XRP Ledger (XRPL) block explorers.

The XRPL account in question has several recent transactions, most of which were executed within the last 48 hours. These transactions largely consist of trust-line interactions involving billions of phantom RLUSD tokens.

Some community members have asserted that this development is genuine since it is visible on an XRPL address, especially given that RLUSD is expected to launch on XRPL.

However, RLUSD has not yet been issued by Ripple. Several prominent figures in the XRP community have quickly denounced this as a scam.

Vet, a XRPL dUNL validator and founder of NFT marketplace xrp.cafe, emphasized that RLUSD has not been issued yet. He urged members to wait for official information from Ripple to avoid falling prey to scammers.

The official stablecoin of Ripple $RLUSD is not issued and available yet !

Always wait for the official information by @Ripple and @RippleXDev respectively!

Scammers are taking advantage of you if you don't stay vigilant. https://t.co/Y29P6nUB4d pic.twitter.com/ZuaLwNFsjC

— Vet ?‍☠️ (@Vet_X0) June 17, 2024

Similarly, Wietse Wind, founder of Xumm (now Xaman) developer team XRPL Labs, stressed that the supposed RLUSD token is fake. According to him, they were created by scammers attempting to sell worthless assets on the DEX or through AMM. “Do not engage,” he cautioned.

“Activated by Bitrue” Indicates Nothing

Some community members are resisting these warnings, citing the wallet’s activation by the Bitrue exchange, which they falsely believe lends credibility to the claim.

Wind clarified that being activated by Bitrue only means a Bitrue user activated the account or that the scammer used the exchange to send the first deposit, which does not confer any legitimacy.

At the same time, enthusiasts are left wondering how bad actors could fake the minting of RLUSD or adopt the “RLUSD” ticker. According to Wietse Wind, the XRPL is an open network where anyone can issue anything, whether it be fake or genuine.

He emphasized that anyone can issue assets using any name they choose, but the name alone does not make the asset trustworthy.

Anyone can create anything. There's Gatehub USD, there's Bitstamp USD, I can issue Wietse USD, you can issue Moon 2005 USD. Doesn't make all of them trustworthy.

— WietseWind (?? Xaman @XRPLLabs) (@WietseWind) June 17,2024

This point is further illustrated by a recent report revealing how some dishonest individuals used Elon Musk’s identity to falsely suggest that X/Twitter was testing payments with XRPL.

Amid this latest scam, X user Vincent Van Code questioned why anyone would be in such a hurry to buy a stablecoin like RLUSD, considering it would not yield any financial gain. He suggests those who fall for the scam deserve the loss as he expects it to teach them a valuable lesson.

Significantly, the Ripple stablecoin is set to launch before 2024 ends. Just as Ripple announced the RLUSD name for its stablecoin last week, similar official press releases will also announce its launch.