Cryptocurrency scams are nothing new in the ever-popular industry. The most crypto scams are targeting greed and beginners in the crypto sphere, as Allan Garland from Cryptoscam.info said. A new email from a fake Binance website claims XRP holders can earn double-digit returns on their holdings with XRP staking. Users need to be aware this is a scam and the email does not originate from Binance either.
Beware Of The XRP Staking Scam
It would be beneficial for many users to stake their XRP holdings like a proof-of-stake currency. However, the network isn’t designed as such, making that process impossible. That doesn’t prevent exchanges from letting users leverage their XRP holdings to generate revenue over time. However, the returns will be rather low, depending on the overall XRP demand for lending, etc.Â
A new email makes the rounds claiming to be from the Binance exchange. While the company sends plenty of emails to users, this one isn’t legitimate. Instead, it is a ploy by scammers who aim to defraud Ripple supporters and enthusiasts. They claim users can earn up to 31% yearly return by staking XRP. Such rates are impossible to achieve as the network has no native staking ability.Â
Even when using XRP for “CeDeFi“, such rates are ludicrous at best. Earning a tenth of that would be exceptionally high, let alone the full amount. Moreover, the email may seem like it is from Binance, but it redirects users to a phishing site. Anyone depositing their funds on this platform will likely lose it forever, and there will be no high staking returns either.Â
The Autonomous XRP Staking Trial program is a clear scam. Its “creators” claim Ripple set aside as many as 5 billion XRP for this project. While that would be possible – there are plenty of asset reserves in escrow contracts –Â the company has no intentions of focusing on staking. As such, any platform claiming to help users stake XRP is best avoided. Unless the company announces it, one should never trust such offerings.Â
A Somewhat Decent Fake Email
The XRP staking program is advertised by a company labeling itself as Binance. The email looks somewhat convincing, as it contains better English than most phishing emails. That said, there are some minor inconsistencies. For instance, the claim of only allowing 8,999 users at first is obviously a red flag. Binance has never put a limit on the number of users who can deposit funds for staking or CeDeFi. Instead, they may limit the maximum capital a user can allocate but never how many people can participate.Â
Second, everyone knows earning between 16-31% from staking XRP is impossible. Although small-cap PoS coins can offer over 100% returns, those rates will collapse pretty quickly. This email makes it seem as if that 16% bottom line is always guaranteed, which would be impossible. One can only hope no one fell for this obvious scam. Unfortunately, that is an unlikely outcome.Â
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