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Risks associated with trustlines?


Zara
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I'm interested in setting up for a few of these airdrops. Some of the tokens I'll keep, and others I'll just pickup more xrp with. Sologenic and Vagabond seem like the ones with the most potential.

Solo is a bit sketchy. My understanding is Estonia is known for internet crimes. Vagabond seems like it might be legit. I skipped Elysian as their white paper did not have much in it. Maybe, I should have extended a trustline and just sold.

What are the risks with trustlines if rippling is disabled? I can just cancel it if I never receive any tokens, right? Does the limit I set let them take XRP?

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1 minute ago, Zara said:

I'm interested in setting up for a few of these airdrops. Some of the tokens I'll keep, and others I'll just pickup more xrp with. Sologenic and Vagabond seem like the ones with the most potential.

Solo is a bit sketchy. My understanding is Estonia is known for internet crimes. Vagabond seems like it might be legit. I skipped Elysian as their white paper did not have much in it. Maybe, I should have extended a trustline and just sold.

What are the risks with trustlines if rippling is disabled? I can just cancel it if I never receive any tokens, right? Does the limit I set let them take XRP?

Estonia is common for crypto because its regulations are favorable. It all depends on how you look at it. From a traditional finance perspective, it's a big red flag. From a crypto perspective, hey they're actually registered as a business somewhere!

Most projects on the XRPL have very little behind them. I would say any project is a highly speculative bet right now. I was fortunate enough to have XRP profits I could use to buy in with, so I spread them among several XRPL projects. But I can't say I recommend these new coins for everyone.

To put this in perspective, I'm old school Ripple Consensus Ledger. The only two businesses built on the XRPL who have survived in the long run are Bitstamp, whose main business is an exchange and whose gateway service is just a value-add for its customers, and Gatehub, who wasn't even started until the very end of the early Ripple era and was propped up by Ripple because they were the only one to provide an XRPL wallet after Ripple was forced to shut down RippleTrade. Percentage-wise it's really terrible considering how well projects on the various smart contract chains have faired over the past five years.

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Can I just withdraw the trustline if the tokens don't sell? All I'm really worried about at this point is locking up XRP, and getting stuck with a worthless token. So many airdrops are going out I don't trust all of them. Are you going to be participating in any of them?

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You could get your trustline with them frozen, meaning, you can't send and trade your token, this is the main reason why I don't buy other alternative currencies on the XRP Ledger.

It depends on what the issuer does if you really as me about it, if the issuer blackholes their account, they won't be able to freeze your trustline with them.

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6 hours ago, Zara said:

Can I lose XRP, though from just doing a sell off after the drop?

Don’t take anybody’s word for it, read the documentation - https://xrpl.org/trust-lines-and-issuing.html

XRP is superior to any token issued on XRPL and XRP is treated differently comparing to, say, ELS. As @brianwalden said, the biggest risk with trustlines is that issuers can freeze tokens they issued (unless the acount is blackholed of course). Your XRPs are your XRPs, issuers can’t touch them without your private key.

Edited by Lamberth
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5 hours ago, Zara said:

Can I just withdraw the trustline if the tokens don't sell? All I'm really worried about at this point is locking up XRP, and getting stuck with a worthless token. So many airdrops are going out I don't trust all of them. Are you going to be participating in any of them?

Yes, you can delete trustlines at any time.

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8 hours ago, Zara said:

Can I just withdraw the trustline if the tokens don't sell? All I'm really worried about at this point is locking up XRP, and getting stuck with a worthless token. So many airdrops are going out I don't trust all of them. Are you going to be participating in any of them?

Yes I've participated in a few airdrops. Most I don't, it's just not worth my time. But I hear several of them have been quite lucrative.

In the absolute worst case you can always send the coins back to the issuing address and remove the trustline. I believe even if the issuer freezes the coins, you can always send them back to the issuer.

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12 hours ago, Zara said:

What are the risks with trustlines if rippling is disabled? I can just cancel it if I never receive any tokens, right? Does the limit I set let them take XRP?

With Rippling disabled, you are essentially exposed to only the risk that the Issued Assets from the wallet you extended the Trustline to are worthless. If it's an Airdrop, meaning you didn't buy the Issued asset off of an Orderbook, you can't really lose anything. If you did acquire the Issued Asset on an Orderbook then your potential loss would be limited to whatever you paid.

There are a few XRP locked up in reserve for the Trustline object, but you can always close the Trustline to unlock those 2 XRP. So not much risk there.

The limit you set is the maximum amount of the Issued Asset that the issuing wallet can send you. So if an Airdrop was for 1000/Trustline and you set the max for 100, you could only recieve the 100 maximum. 

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  • 3 weeks later...

https://xrpscan.com/account/rsoLo2S1kiGeCcn6hCUXVrCpGMWLrRrLZz

I read in this thread this is the official SoloGenic (SOLO) account.

I am having trouble finding information on what XRPSCAN means when it says:
"BLACKHOLED ACCOUNT This account is permanently blackholed. It cannot sign any transactions or issue new tokens."

 

They are set to do an Airdrop with a deadline on the 24th is this a Scam Coin and Airdrop?

Thanks in advance for any knowledge.

Edited by KnowledgeSeekerXRP
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40 minutes ago, KnowledgeSeekerXRP said:

https://xrpscan.com/account/rsoLo2S1kiGeCcn6hCUXVrCpGMWLrRrLZz

I read in this thread this is the official SoloGenic (SOLO) account.

I am having trouble finding information on what XRPSCAN means when it says:
"BLACKHOLED ACCOUNT This account is permanently blackholed. It cannot sign any transactions or issue new tokens."

 

They are set to do an Airdrop with a deadline on the 24th is this a Scam Coin and Airdrop?

Thanks in advance for any knowledge.

It means they can’t issue more SOLO or freeze your SOLO tokens.

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