Ripple CTO Warns of Scam in the Name of XRP Airdrop

Bittime - David Schwartz, Ripple's Chief Technology Officer (CTO), recently issued a warning to the XRP community on social media This warning is important for those of you who are involved in the world of cryptocurrency, so that you are more alert to threats that could endanger your funds.

David Schwartz Warns of Fraud at Coinbase

David Schwartz, known by the username @JoelKatz, shared a screenshot of an email he received from someone claiming to be Coinbase's support team. 

The email asks recipients to click on a provided link to update their account. The content of the email states that some information in the account needs to be updated so that you have a better and smoother experience.

However, Schwartz immediately warns that this is a scam. He emphasized that if you receive a similar email, you should be careful and not follow the link. In a post on Twitter, Schwartz wrote, "Fraud Warning: If you receive an email like this, it is a scam."

The XRP community immediately responded positively to the warning, with many users grateful for Schwartz's efforts in protecting them from potential harm. One of the big XRP accounts with more than 217,000 followers, @BankXRP, responded with praise, “It's great that you're doing this, David, along with several other big accounts to help protect the community.”

Read also: Impact of XRP Adoption by Bank of America (BoA) for XRP in 2025!

Schwartz Also Warns of Dangers of XRP Airdrops

Apart from warning about fraud in the name of Coinbase, David Schwartz has also advised the crypto community to be careful about XRP airdrops. In a previous discussion regarding crypto taxes, Schwartz expressed concern about the negative impact of airdrops, even legitimate ones. 

He warned that airdrop receipts could create financial problems for recipients, especially in countries like the United States that impose taxes on airdrops and other crypto income.

Taxes on airdrops can be a big problem, because even though airdrops are legitimate income, you have to pay taxes when the assets are received, not when the value of the crypto increases. This means that you must report the value of the crypto received at that time as taxable income.

Read also: XRP Price Analysis is Stable Even though the Crypto Market is Crashing

XRP Market Performance

Last Friday, the price of XRP increased by around 4%, moving from $2.27 to $2.36. However, after that the price of XRP fell slightly, and at the time of writing this article, XRP is trading at around $2.34 per coin.

As the crypto world continues to develop, warnings like those provided by David Schwartz are very important to remind you to always be alert to fraud and other potential risks in the cryptocurrency ecosystem.

FAQ 

What is XRP and what is its use?

XRP is a digital asset created by Ripple Labs and designed to facilitate cross-border payments. XRP blockchain technology enables transactions in just a few seconds with very low fees making it ideal for international money transfers and micropayments.

What is the Difference Between XRP and Other Cryptocurrencies Like Bitcoin?

XRP supports a cross-border payment system with a focus on speed and cost efficiency, different from Bitcoin which functions more as a store of value and investment tool. In addition, XRP uses a consensus mechanism that does not require mining so it is more energy efficient.

How much is 1 XRP USD?

Currently, 1 XRP is worth $2.34 according to Coinmarketcap. 

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Reference

Coin Market Cap, Ripple CTO Makes Critical Scam Warning About Coinbase Impersonators, accessed January 12, 2025.

Author: MF