Internet con artists target XRP investors by touting fake staking services that promise returns of up to 31%. It's worth noting that the supplied coin doesn't use a proof-of-stake consensus mechanism.
In order to facilitate instant and safe international transactions on the Ripple network, XRP was created as a cryptocurrency. Based on a decentralized ledger technology called the XRP Ledger, it was developed in 2012 by Ripple Labs Inc.
Unlike Bitcoin, there is a finite number of XRP available (100 billion), with about 50 billion already in use. The network can process up to 1,500 transactions per second, and XRP transactions are resolved in only a few seconds. Several of the world's largest banks and financial organizations have adopted XRP as a low-cost alternative to more conventional payment systems.
Staking services for XRP are being offered by online criminals who pose as legitimate cryptocurrency businesses like Ripple and Binance by creating bogus websites and sending spam emails. These swindlers are using online persona fraud to con victims out of money.
The phony site is an exact copy of Ripple's legitimate website in terms of style, design, and even some of the blog posts that were published on ripple.com. The imposters also tried to appear more legitimate by talking about the benefits of using a well-known hardware wallet like a Ledger or a Trezor for private key storage.
Emails purporting to come from Binance offer a fake website that permits XRP staking with rewards of up to 31%. On January 21, a supporter of the industry going by the Twitter handle @RipplePandaXRP warned the XRP community of the scam.
Since it does not employ a proof-of-stake (PoS) process like other major PoS cryptocurrencies like Ether, XRP is not stakable. Instead, a network of "unique nodes" that agrees on which transactions may be executed relies on the validity of XRP transactions.
Investors are urged to do their due diligence on a platform before committing any funds.
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