Ripple CTO warns against XRP scams amid SEC-induced hype
The XRP price rallied over 70% — bringing up its value from $0.47 to $0.82 in a day. The incident also marks the biggest price jump for XRP in the past year.
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A court ruling in favor of Ripple Labs — stating that XRP (XRP) is not a security — reignited the long-lost hype around the ecosystem. Anticipating an influx of scams as the token rallied, Ripple chief technology officer David Schwartz issued a warning to investors.
A two-year-long legal battle between the United States Securities and Exchange Commission and Ripple partly concluded on July 13, with its XRP token shaking off the “security” label in a decision by the United States District Court for the Southern District of New York.
XRP is not a security.
This victory for @Ripple is a win for the entire industry and a step toward regulatory clarity in the U.S.
A huge thank you to @bgarlinghouse, @chrislarsensf, and @s_alderoty for their leadership and the #XRPCommunity for their continued support.
— Ripple (@Ripple) July 13, 2023
What followed was an organic but substantial spike in XRP’s market price. As shown below, the XRP price rallied over 70% — bringing up its value from $0.47 to $0.82 in a day. The incident also marks the biggest price jump for XRP in the past year.
The hype around cryptocurrencies or crypto ecosystems like nonfungible tokens (NFTs) is when crypto scammers get highly active in trying to dupe unwary investors. Schwartz took to Twitter to warn against the rising XRP scams. He said:
“A lot of scammers are taking advantage of the recent good news to try to cheat and steal. There are no airdrops, giveaways, or special offers associated with this ruling.”
Given its massive popularity and growing community, scammers often imitate Ripple’s official website to promote fake giveaways and airdrops. In such instances, the scammer intends to gain access to the potential victim’s crypto wallets, which would be used to drain existing tokens or siphon stolen funds at a later date.
Related: Ripple, Binance impersonators target XRP holders via fake staking program
In April 2023, YouTube helped recover a creator’s channel with 2.4 million subscribers, which was hacked to promote XRP scams.
so sorry you’re having to deal with this! first, we’ll need to get some quick info from you & then we’ll connect you w/ a specialist team who helps restore account access. follow us & we’ll be able to DM you the info you need!
— TeamYouTube (@TeamYouTube) April 28, 2023
YouTuber DidYouKnowGaming regained access to its account and recovered the deleted videos following a swift intervention from YouTube. The exploit used by the hackers to gain access to YouTube accounts remains a mystery.
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Ripple CTO warns against XRP scams amid SEC-induced hype
Ripple’s chief technology officer, David Schwartz, has issued a warning to investors about the rise of XRP scams following a court ruling in favor of Ripple Labs. The ruling stated that XRP is not a security, reigniting hype around the ecosystem. In response to the anticipated influx of scams, Schwartz took to Twitter to caution investors against falling for fraudulent airdrops, giveaways, or special offers associated with the ruling. Scammers often imitate Ripple’s official website to promote fake giveaways and airdrops in order to gain access to victims’ crypto wallets. This warning comes as the XRP price experienced a significant spike, jumping over 70% in a day.
The court ruling and XRP price spike
A two-year-long legal battle between the United States Securities and Exchange Commission and Ripple concluded with a decision by the United States District Court for the Southern District of New York, stating that XRP is not a security. This victory for Ripple led to a surge in the XRP price, with its value increasing from $0.47 to $0.82 in just one day. This marks the largest price jump for XRP in the past year.
Warning against XRP scams
With the increased attention and popularity surrounding XRP, scammers have become more active in attempting to deceive unsuspecting investors. David Schwartz urged caution and vigilance, emphasizing that there are no legitimate airdrops, giveaways, or special offers associated with the court ruling. Scammers often target potential victims by imitating Ripple’s official website and promoting fake giveaways and airdrops. Their intention is to gain access to victims’ crypto wallets and steal their funds at a later date.
YouTube’s intervention in XRP scams
In April 2023, YouTube helped recover a hacked channel with 2.4 million subscribers that was being used to promote XRP scams. The YouTuber, DidYouKnowGaming, regained access to their account and recovered the deleted videos with the assistance of YouTube. The method used by the hackers to gain access to YouTube accounts remains unknown.
Preserving this moment in history
This article can be collected as an NFT (non-fungible token) to preserve this significant moment in the crypto space and show support for independent journalism. NFTs have gained popularity as unique digital assets that can represent ownership of digital content.
Summary:
Ripple’s CTO, David Schwartz, has warned investors about the rise of XRP scams following a court ruling that declared XRP is not a security. The ruling led to a significant spike in the XRP price, prompting scammers to take advantage of the hype. Schwartz cautioned investors against falling for fraudulent airdrops, giveaways, or special offers associated with the ruling. He highlighted that scammers often imitate Ripple’s official website to promote fake giveaways and airdrops, aiming to gain access to victims’ crypto wallets. YouTube also intervened in April 2023 to recover a hacked channel promoting XRP scams. Collecting this article as an NFT can preserve this moment in history and support independent journalism in the crypto space.