Ripple CTO says to expect RLUSD shortage at launch, but don’t FOMO
Ripple's chief technology officer David Schwartz warned that there may be a “short supply” in the early days of Ripple's US dollar-pegged stablecoin, but cautioned investors against “FOMO”.
In a Dec. 15 X post, Schwartz said he expects excessive volatility for the stablecoin RippleUSD (RLUSD) immediately after launching several large orders for the event, although it is designed to maintain 1:1 parity with the US dollar. .
He pointed out that some of the smaller initial market auctions for the currently unreleased stablecoin are artificially inflating the price. A post on X showed that 1 RLUSD was valued at 511 XRP (XRP), at a current price of $1,244, on a Ripple wallet called Xaman.
“There is certainly someone willing to pay $1,200/RLUSD for a fraction of RLUSD,” Schwartz said.
Source: Emily
Schwartz said the bid appears to be someone seeking the “prestige” of buying the first RLUSD to go to market.
But rest assured, when the supply stabilizes, the price will go back very much to $1 USD. If not, something is seriously wrong,” he said.
“Please don't FOMO into Stable Coin! This is not an opportunity to get rich.
On December 11, Ripple CEO Brad Garlinghouse announced that RLUSD has received final approval from the New York Department of Financial Services, which will launch a stable coin on the X official Ripple account “soon”.
Source: Ripple
Related: Ripple's RLUSD stablecoin: Here's what you need to know before launching
Once RLUSD is available, Ripple plans to use both RLUSD and XRP as a cross-border payment solution to serve its customers globally, the company said in the announcement of the RLUSD beta test.
In June, Ripple president Monica Long also said that RLUSD was built to be “more and more complementary” to XRP.
According to some sources, Ripple sees RLUSD as “useful” to XRP as RLUSD and XRP will be linked to each other.
While XRP helps to increase liquidity with the high exchange presence on RLUSD, the value of Storicoin also stabilizes in combination to prevent volatility.
According to Brad Garlinghouse, CEO of Ripple Labs, RLUSD focuses mainly on large institutional players.
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