Ripple CTO warns of RLUSD launch volatility, says “don’t FOMO into a stablecoin”

As a seasoned crypto investor with a knack for navigating the volatile waters of digital assets, I find myself intrigued by the impending launch of Ripple‘s USD-pegged stablecoin, RLUSD. David Schwartz, CTO of Ripple, has rightly warned us about potential supply constraints and price fluctuations upon launch, which is not unheard of in this wild world of crypto.

David Schwartz, as Ripple’s Chief Technology Officer, has cautioned potential investors about potential issues with availability and price volatility for Ripple’s dollar-linked stablecoin, RLUSD, once it is introduced to the market.

As a crypto investor, I’m reassured by Schwartz’s confirmation that after the market stabilizes and supply and demand find their balance, the value of this stablecoin should approach its intended $1 equilibrium, despite any temporary price fluctuations we might experience along the way.

With the launch of RLUSD, there could be temporary shortages during the initial phase as the market adjusts and finds its equilibrium. Currently, there’s an individual ready to pay $1,200 per RLUSD for an extremely small portion of it. Various tools will display the maximum price someone is prepared to pay, regardless if it’s just for a tiny fraction…

— David “JoelKatz” Schwartz (@JoelKatz) December 15, 2024

Schwartz addressed concerns over the elevated value of RLUSD during pre-launch, suggesting that it might be due to excitement rather than real market value. A single bid on a Xaman Ripple (XRP) wallet was reported at 511 XRP, equating to over $1,200 for some RLUSD tokens. Schwartz clarified that these high bids likely stem from individuals eager to be the first holders of the RLUSD tokens, rather than a true representation of their actual worth.

As a crypto investor, I eagerly await the upcoming launch of the stablecoin, following the final regulatory approval from the New York Department of Financial Services, as announced by Ripple CEO Brad Garlinghouse. To bolster its cross-border payment solutions and provide liquidity to financial institutions, Ripple aims to integrate RLUSD alongside XRP in their offerings.

Breaking news… We’ve secured final approval for $RLUSD from the New York Department of Financial Services! Look forward to the launch of exchange and partner listings shortly. Remember, you’ll be the first to know when RLUSD goes live – straight from @Ripple.

— Brad Garlinghouse (@bgarlinghouse) December 10, 2024

The corporation considers RLUSD as an enhancement to XRP, boosting its practicality while leveraging XRP’s extensive trading platforms to maintain a consistent price for RLUSD. Ripple executives have emphasized that their primary objective is to assist institutional investors, with beta testing indicating potential in preventing depegging and improving global liquidity.

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2024-12-16 10:26