Ripple warns of XRP scam giveaways after its legal victory.
However, community skepticism grows over XRP’s price dip.
Community members accuse Ripple of profiting from XRP’s sales while warning of scams.
In the wake of a significant legal victory, where Ripple Labs had a $2 billion penalty demand from the SEC reduced to $125 million, the company has issued a warning to the crypto community about an increase in scams related to XRP. The company cautioned users against fake accounts and fraudulent promotions about “XRP Giveaways” or “XRP Airdrops” in light of the victory frenzy.
Ripple assured the community that neither the company nor its executives are orchestrating a giveaway and will never ask anyone to send funds to receive double in return. As a result, it urged vigilance against these scams suggesting otherwise.
And once again with Wednesday's historic victory, we've seen an uptick in scams. 🚨🚨🚨Please beware of scam "Ripple" accounts, fake executive accounts or others promoting "XRP Giveaways" or "XRP Airdrops." Ripple and its executives will NEVER ask you to send funds anywhere. https://t.co/uGitnz71yn
— Ripple (@Ripple) August 9, 2024
However, scam-related promotions after major news about Ripple are not new. Ripple’s CTO, David Schwartz, issued a similar scam warning on July 14, 2023, following the victory ruling that XRP is not a security.
This latest warning from Ripple has sparked a variety of responses from the community. X user Don Manning confirmed receiving numerous follow-up requests from fake accounts following the company’s announcement of the lawsuit victory. “As soon as the news hit, I was hammered with a bunch of fake accounts following me,” he said.
Meanwhile, others expressed skepticism about Ripple’s practices and questioned the impact of its legal success. They criticized the company for profiting from XRP sales while cautioning users against scams.
Steven White, a vocal critic, tweeted, “The only scam around here is you selling XRP for billions,” implying that Ripple benefits significantly at the expense of retail investors.
Meanwhile, another user questioned the impact of the victory amid XRP’s unimpressive performance. The coin briefly surged from $0.49 to $0.64 but lost steam afterward as its price is now in negative gains, trading around $0.5866.
These comments open up the disconnect between positive legal news and the ongoing decline in XRP’s price, raising questions about the true implications of Ripple’s legal outcomes.
On Wednesday, Judge Analisa Torres concluded the first chapter of a major SEC crypto case by imposing a $125 million penalty on Ripple for violating securities laws in 1,278 institutional sale transactions. The penalty, significantly lower than the $2 billion the SEC had sought, led to a more than 20% surge in the price of XRP, the token closely associated with Ripple.
The federal judge also issued an injunction against Ripple, prohibiting future violations of securities laws. The decision represents a partial victory for Ripple, given the much lower financial penalty compared to the SEC’s demands.
The post Ripple Warns of XRP Scams, Community Points Fingers Back appeared first on Coin Edition.
