XRP holders lost 8.5 million tokens to fake giveaways in one year

on Apr 24, 2020
Updated: Apr 28, 2020
  • A community site created to fight XRP-related scams reported that nearly 9 million XRP coins were lost.
  • The most popular scams involve fake giveaways and airdrops.
  • One example is the scam involving a YouTube channel that tricked users by playing videos of Brad Garlinghouse.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Everyone knows that scams are still extremely common in the crypto industry. However, most people do not know just how common they actually are. To put this into perspective, a community site that combats fraud revealed how much XRP ended up lost to hackers.

Nearly 9 million coins lost in less than two years

Copy link to section

The site, which is still in beta, revealed yesterday on Twitter that XRP holders have sent over six million in 2019 alone. So far, only four months of 2020 have passed, and XRP users still managed to lose almost 3 more million to scams.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

The xrplorer site reveals that XRP users would withdraw the coins and send them to addresses belonging to giveaway scams. The scammers would then quickly dispose of the funds on various major exchanges, such as Binance. In fact, Binance was and still is the most popular one in this and the past year alike.

The xrplorer’s team revealed that “According to our data, XRP accounts associated with these “giveaway” scams are in possession of at least ~5.9M XRP with many funds laundered every day through exchanges and swap services.

Airdrop and giveaway scams still the most common

Copy link to section

Of course, xrplorer is a relatively new source of data, and its reliability has yet to be fully confirmed. But, it does provide a certain insight into the ongoing problem, which revolves around giveaway and airdrop scams.

The scams are nothing new, but they are getting craftier and craftier. One major scam that made headlines recently involved a fake channel on YouTube. The channel supposedly belonged to Ripple CEO, Brad Garlinghouse.

The video did feature the real Garlinghouse, but the link in the description led to a fake airdrop. The airdrop offered 50m in XRP to those who sent a portion of the coin first.

Interestingly enough, YouTube, which was quick to ban crypto content in late 2019, took quite a bit of time when it was supposed to remove a real scam. By the time the video disappeared, over 14,000 people saw it, and the channel had 342,000 subscribers. This is not an isolated incident, and similar scams emerge all the time, so crypto users should always remain cautious.

XRP Crypto