Originally published on: December 16, 2024
Ripple’s Chief Technology Officer, David Schwartz, has issued a warning to investors anticipating the launch of Ripple’s US dollar-pegged stablecoin, RLUSD. Schwartz predicts that there may be initial “supply shortages” for the stablecoin but advises against giving in to the fear of missing out (FOMO).
Schwartz anticipates heightened volatility for RLUSD in its early days, with large orders influencing its value despite being designed to maintain a 1:1 parity with the US dollar. Ahead of the launch, there have been small pre-market bids for RLUSD, artificially inflating its price. One bid on X showed 1 RLUSD valued at 511 XRP, equivalent to $1,244 at current rates.
Despite these fluctuations, Schwartz assures investors that the price of RLUSD will stabilize close to $1 once the supply evens out. He emphasizes that any significant deviation from this indicates a serious issue in the market.
With the final approval from the New York Department of Financial Services, RLUSD is set to launch soon, as announced by Ripple CEO Brad Garlinghouse. Ripple plans to integrate RLUSD and XRP into its cross-border payments solution, catering to its global clientele. The company sees RLUSD as a valuable addition to XRP, with both tokens complementing each other and benefiting from their pairing.
Garlinghouse hints that RLUSD will primarily target institutional investors, offering them a stable and reliable asset for their transactions. As the cryptocurrency landscape evolves, RLUSD is poised to play a crucial role in Ripple’s ecosystem.
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