The cryptocurrency community raised concerns about a new scam targeting XRP (XRP), investors through a fake staking scheme.
Online fraudsters mimic large cryptocurrency organizations such as Ripple and Binance. They create fake websites and send out emails claiming to offer staking services.
One of these websites has a blog with the headline “XRP staking slated as debut January 2023 retail customers.” In which users are invited “stake” their XRP to receive returns on investments (ROI) that seem implausible and range between 12 to 27 percent,
Fraudulent scammers claim that investors in XRP will get a higher ROI (return on investment) if they have 10,000 accounts.
The fake website mimics Ripple’s website ripple.com by replicating the website’s style, typefaces, and linking to Ripple blog articles.
In an effort to increase credibility, the impersonators included information about the importance of self-custody using major hardware wallets such as Trezor or Ledger. In an attempt to make the posts appear more legit, this was done.
This fake website contains many mirror domains ending in “.org.th”, or “.com.ve.” It is designed to defraud users worldwide of XRP.
As part of the fraudulent XRP staking web site, you can find imposter letters claiming to be from Binance.
RipplePandaXRP is a member of the XRP industry. He tweeted to alert the community of a fraud on January 21st. RipplePandaXRP posted on its website that it advised not to send XRP to unknown addresses and to verify that the address is legitimate.
Despite this, the Binance exchange is actually a decentralized finance (DeFi), staking for XRP in its Binance Earn program.
Binance’s XRP DeFi staking program, on the other hand allows users to earn up to 1.4% per year.
It is important to remember that XRP doesn’t use a proof of stake (PoS), like other popular proof-ofstake cryptocurrencies such as Ether. XRP cannot therefore be staked (ETH).
Instead, the processing XRP transactions depends on a network made up of unique nodes that agree to execute transactions within the network.