The cryptocurrency ecosystem continues to evolve rapidly, with new token models and blockchain experiments emerging daily. While innovation can drive adoption, it also increases the risk of projects that may prioritize extraction over utility. Traders and investors are becoming increasingly cautious, recognizing that not every token associated with established networks provides meaningful value or aligns with community interests. This perspective was emphasized by Dom Kwok, co-founder of EasyA, who reacted to a recently announced token plan involving XRP. Kwok highlighted concerns over the structure of the proposed initiative, describing it as potentially prioritizing short-term gains for creators rather than delivering sustainable utility to the XRP community. be careful folks, this looks like a pure extraction play — Dom Kwok | EasyA (@dom_kwok) January 3, 2026 Two-Chain, Two-Role Token Concept The project in question was outlined by YoungHoon Kim, who has drawn attention due to his high-profile credentials, including an IQ of 276 . Kim proposed a dual-token ecosystem: $LAMB, a token on Solana aimed at community growth, and an XRPL-linked token intended to power DAO utility. The concept positions XRP as the foundation for the second token’s functionality, leveraging its established utility and on-chain capabilities. While such cross-chain approaches are technically innovative, Dom Kwok warned that the plan may represent an extraction play, a term in crypto markets used to describe projects designed primarily to capture investor funds without delivering long-term value. He urged holders to exercise caution, highlighting the need to distinguish between genuine utility and schemes that exploit trust in established ecosystems. Understanding Extraction Plays in Crypto Extraction often surfaces in rapidly growing markets where enthusiasm outpaces due diligence. These projects typically promise high utility or community benefits but fail to establish mechanisms for sustainable adoption or transparent governance. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 In the case of multi-chain token structures, the complexity itself can obscure risks, making it harder for investors to evaluate whether value creation or short-term monetization drives the initiative. Dom Kwok’s warning underscores the importance of critical assessment , especially when projects involve established assets like XRP. Even when a token references a network with proven utility, the design and incentives behind new tokens can significantly impact risk. Investors are encouraged to analyze tokenomics, governance, and actual utility before committing funds. XRP Community Response and Vigilance The reaction from the XRP community to Kim’s announcement has been mixed. While some are intrigued by cross-chain DAO concepts, others heed warnings like Kwok’s, emphasizing careful scrutiny. This episode illustrates a broader trend in crypto: innovation must be paired with transparency and sustainable design to gain lasting credibility. Caution Over Hype Dom Kwok’s advisory serves as a reminder that not all new token initiatives are aligned with long-term network health. For XRP holders, evaluating projects critically, verifying utility, and assessing governance structures are essential steps in avoiding potential scams . As blockchain ecosystems evolve, informed vigilance remains the most effective safeguard for investors navigating complex token landscapes. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post EasyA Co-Founder Sends Critical Warning to XRP Holders. Beware of This Potential Scam appeared first on Times Tabloid .
