Search ForexCrunch
  • XRP is often used in financial scams and pyramids.
  • XRP/USD is controlled by bears, staying below $0.2500.

Analysts from Elliptic monitored XRP transactions and identified several hundred accounts related to illegal activities. the Block reports.

A significant part of XRP transactions totaling over $400 million is connected with financial pyramids and other fraudulent schemes.

In general, illegal transactions account for 0.2% of the total cryptocurrency trading volume.

According to Elliptic co-founder Tom Robinson, XRP is more likely to appear in dubious schemes of fast enrichment, while Bitcoin is more often used on a darknet marketplace.

“I suspect there are a lot of retail holders of XRP, which may be an attractive target for scammers,” Robinson told in the interview with The Block.  

 It took Elliptic a long time to deploy the monitoring solution for XRP transactions than for Bitcoin’s and Ethereum’s blockchains. It is due to the unique structure of XRP blockchain.

Notably, in June, California-based fintech startup Ripple signed an agreement with the technology company Coinfirm to control XRP usage. Data will be collected to counter money laundering using the coins.

Meanwhile, XRP/USD is changing hands at $0.2480, down 1% since the beginning of the day. A sustainable move below $0.2500 bodes ill for XRP bulls. The coin may continue the decline towards the next support at $0.2400.

XP/USD, 1-hour chart