In this review we have a look at a new project running on the XRP Ledger – the xr77 token and investment fund by XRDC. We explain why you should avoid it.
What is xr77
In its official documents, xr77 is presented as a “premier community investment fund.” The fund supposedly will use algorithmically controlled methods to prevent “price destruction” as well as collateral to preserve value.
xr77 is a joint project of xTREME and XR Doge Classic (XRDC). Holders of those tokens are offered the opportunity to join this new project.
While the xr77 token price allegedly will be algorithmically controlled in order not to fall more than 10% under $1740, the xr77 fund supposedly will create a sustainable passive income for holders.
xr77 intends to invest in stocks like Ripple and a trading bot is supposed to generate profits in trading various tokens on the XRP Ledger.
But is xr77 legit, can you trust it? No you can’t, it is not a legitimate project.
xr77 was brought to our attention by Rug Pull Doctor and we encourage you to read his thread about people that are behind this project and the history of their preview projects. This reading alone raises several red flags.
In this review we will focus purely on what xr77 offers, which is enough to label it as a scam that everybody should avoid.
Illegal investment service
Let’s start with the obvious. xr77 wants your money, which supposedly will be invested and generate you profits. That’s a definition of an investment service/selling securities.
Such services are regulated in all countries and their providers need to be authorized by financial regulators.
So, is xr77 authorized to sell securities/provide investment services? No, it is not, it has no license whatsoever in any country of the world.
So, the conclusion is that xr77 is an illegal investment service that can’t legally be offered anywhere in the world. You can check that fact with the national financial regulator in your country.
We know that financial regulation does not have the best reputation in the crypto world, but if a provider breaks the laws that are clear, it never is a good sign.
Freezing your money
Perhaps the most alarming aspect of the xr77 project is their mechanism to maintain the price of xr77 above the set floor.
They openly say that if you try to trade under the floor price, they will freeze your account, more specifically your assets. How can they do that?
The XRP Ledger has a function that allows the issuer of a custom token to freeze any operations with that token. This does not apply to XRP, that can’t be frozen by anybody, only custom tokens.
So xr77 can do that, if they don’t like you, as the issuer of the xr77 token they can freeze your xr77 holdings. How nice is that?
Do you want to be part of a project that can freeze your assets and openly says that it is part of its strategy?
It is an ideal rug pull tool, you dump your token while you freeze other accounts so that they can’t react.
Not to mention the utopia of algorithmically maintaining the price of a useless token at 5113 XRP. That is absolutely unsustainable and impossible in the long run for a project like xr77.
Trading bot BS
Last but not least, one typical trait of investment scams: A trading bot that will automatically generate profits for its users. Especially when it’s limited to XRPL tokens.
If you have a profitable trading robot, you use it for your profits and you don’t share them with others.
Also, a profitable trading robot is not scalable due to liquidity, especially on low-cap tokens like the vast majority on the XRPL.
In other words, if you have a robot that can generate decent profits for you, you just can’t generate the same profits to 1000 people for example. The more people trade the same strategy, the less profitable it becomes and the more it is prone to attacks from other strategies to take advantage of mass behaviour.
So forget about xr77 having a profitable trading bot that can generate sustainable profits for all xr77 users. That’s just a fairy tale.
xr77 review – Conclusion
xr77 by XRDC is an illegal investment service and an obvious investment scam. It is set to crash, the only question is when.
If you are new to xr77, just stay away from it. If you are already involved because of their past projects or any other reason, you’d better get out of it as soon as you can.
A pro tip: If a project labels itself as the “most valuable” before achieving anything, you know something is wrong with it.