Ripple Issues New Warning About Its Stablecoin: Here are Details

Leading blockchain payments company Ripple issues a new public service announcement (PSA), notifying the general public that its stablecoin, Ripple USD (RLUSD), is still in private beta. 

Ripple noted that although network participants have seen some interesting on-chain activity related to RLUSD, the stablecoin is not yet available for public use. The company warned users to be wary of scammers, emphasizing that any claims of RLUSD distribution are likely scams.

Furthermore, Ripple encouraged crypto enthusiasts to watch for official updates and be wary of potential scams.  

Growing Speculation Amid Surge in RLUSD Minting 

Ripple’s latest message about RLUSD comes amid growing speculations regarding the stablecoin. The private beta testing, which began on August 9, has seen Ripple mint some RLUSD tokens on XRP Ledger (XRPL) and Ethereum networks in its early stage. 

Interestingly, most recently, XRP enthusiasts witnessed over 1.7 million RLUSD minted in five days. These tokens were issued on XRPL and Ethereum across 14 transactions. 

Amid the surge in RLUSD minting, several community members speculated that Ripple may have minted 80-100% of the stablecoin’s supply. 

The speculation gained steam after famous community figure and XRPL dUNL validator Vet tweeted that Ripple minted 99% of RLUSD’s supply in 24 hours. Vet’s comment triggered speculation that the company could be preparing for the mainnet launch of the stablecoin.  

Scam Targeting XRP Holders Amid Anticipation for RLUSD Launch 

As speculation regarding the stablecoin’s launch surge, scam-related activities have also increased. Vet warned XRP community members that scammers have been commenting under the RLUSD tracker, which provides updates on all RLUSD mints, to exploit unwary investors. 

The validator shared a sample of this malicious message, announcing the fraudulent launch of “XRP Rewards Event.” Vet advised users against clicking links under the tracker’s comment section to avoid falling victim.

🚨Please be careful – a ton of scammer accounts are commenting under the RLUSD tracker.

Don’t click on any links in the comments!

Always double check accounts!

Stay vigilant! pic.twitter.com/BoZeQY2AiU

— Vet 🏴‍☠️ (@Vet_X0) September 29, 2024

Besides this incident, other bad actors have claimed that RLUSD distribution has commenced, hoping to scam people of their funds. 

However, Ripple has dispelled these malicious claims, emphasizing that RLUSD is not yet available for public use. 

RLUSD Clawback Feature Could Hinder Its Launch on XRP Ledger This Year

Meanwhile, Vet speculated that RLUSD could launch only on Ethereum this year without going live on XRPL. He asserted that if RLUSD makes its mainnet debut on XRPL, the stablecoin’s clawback feature could prevent usage within the automated market maker (AMM). 

According to Vet, the XRP Ledger currently prevents the use of tokens with clawback features on the network’s AMM. Nonetheless, the XRP community figure suggested that two amendments, XLS-73 AMMClawback and XLS-77, are currently in development to address the issues.

More RLUSD Minted, with 2.3M Tokens Minted in One Week  

In the meantime, network participants have witnessed the minting of more RLUSD tokens hours after Ripple issued its public service announcement. Over the past 10 hours, Ripple has minted 600,000 RLUSD tokens, according to data from Ripple Stablecoin Tracker. 

The latest mint exercise occurred across five transactions on the Ethereum blockchain. Notably, in one week, Ripple has successfully minted 2,311,030 (2.31 million) RLUSD on Ethereum and XRPL.