Ripple Labs has issued a public announcement on X (formerly Twitter) warning users to stay vigilant against scams involving its Ripple USD (RLUSD) token. The stablecoin is currently in private beta testing. Moreover, it’s important to note that the announcement comes amid the minting of a whopping 1.7 million RLUSD tokens on both the Ethereum and XRP Ledger networks.
Ripple Warns of RLUSD Scams
In its statement, Ripple said, “PSA: Ripple USD (RLUSD) is still in private beta, and while you may see on-chain activity, it’s not available yet. Beware of anyone claiming to distribute #RLUSD.” The company further advised users to “Keep an eye out for the latest updates, and stay vigilant against scams!”
The warning follows a notable increase in the minting of RLUSD tokens. Since Saturday, the firm has minted a total of 1.7 million RLUSD tokens, significantly expanding the supply from just over 11,000 tokens.
The largest single minting event occurred on Sunday, September 29, when 480,000 RLUSD tokens were created on the XRP Ledger network. This shows the firm’s commitment of enhancing XRPL use case.
PSA: Ripple USD (RLUSD) is still in private beta, and while you may see on-chain activity, it’s not available yet. Beware of anyone claiming to distribute #RLUSD.
Keep an eye out for the latest updates, and stay vigilant against scams! https://t.co/P1scOUchWz
— Ripple (@Ripple) September 30, 2024
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Ripple has been simultaneously minting tokens on both the XRP Ledger and Ethereum networks. A significant minting event occurred on the Ethereum network, with 950,000 RLUSD tokens created over the weekend.
As the token minting surged, scammers may have leveraged the milestone to lure users into the fake airdrop web. However, the blockchain firm has affirmed that though the minting has been initiating, the tokens can’t be circulated yet.
Brief Overview of RLUSD
Ripple first announced the private beta for RLUSD on August 9. The company shared the news on X, stating, “Testing, testing…RLUSD! We’re excited to share that Ripple USD (RLUSD) is now in private beta on XRP Ledger and Ethereum mainnet.” The announcement emphasized that RLUSD had not yet received regulatory approval, making it unavailable for purchase or trading. At the time, the firm had also warned against potential scams.
For further context, RLUSD is designed to be a stablecoin, pegged 1:1 to the US dollar. It will be backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. The firm also stated that these reserve assets will be subject to third-party audits and they will provide monthly attestations to ensure transparency.
The launch of RLUSD is seen as a key milestone for the blockchain company, as the company seeks to expand the use of its XRP Ledger. The official August announcement highlighted that the release of RLUSD will “drive new opportunities, liquidity, and institutional use cases for users, developers, and applications.”
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Also Read: Ripple Ranked 6th in Total Market Cap; Will XRP Surpass Solana & BNB?
