Ripple’s chief technology officer, David Schwartz, has raised concerns about potential supply issues related to the company’s upcoming US Dollar-pegged stablecoin, known as RippleUSD (RLUSD). In a recent social media communication, he cautioned investors against the fear of missing out (FOMO) as the stablecoin prepares for its launch. He anticipates significant price volatility immediately following its debut, as large orders may emerge despite its design to maintain a 1:1 value with the US dollar.
Schwartz highlighted that early market activity appears to be inflating the price of RLUSD. For instance, an initial bid placed for the unreleased stablecoin saw the price rise to approximately 511 XRP , roughly equivalent to $1,244 based on current XRP values. He indicated that this high bid seemed to stem from a buyer eager to be the first to acquire RLUSD, although he assures that prices are likely to stabilize around the $1 mark once supply levels off.
He expressed the importance of not speculating on the stablecoin, stating that it is not an investment opportunity aimed at generating quick wealth. In a previous announcement, Ripple’s CEO confirmed that the stablecoin had received regulatory approval from the New York Department of Financial Services and would be launching imminently.
Once RLUSD becomes available, Ripple plans to integrate both RLUSD and XRP into its cross-border payment solutions, aiming to better serve its global clientele. Notably, Ripple has positioned RLUSD as a complementary asset to XRP , with expectations that the two will work in tandem. XRP is expected to enhance the liquidity of RLUSD through its availability in various exchanges, with the stablecoin’s price shielded against potential devaluation by virtue of this pairing. Consequently, RLUSD is strategically aimed at institutional clients looking to navigate the cryptocurrency landscape.
