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Ripple CTO Warns Of Initial Supply Shortage For New Stablecoin
According to Odaily, Ripple's Chief Technology Officer, David Schwartz, has cautioned that the company's new stablecoin, RippleUSD (RLUSD), pegged to the US dollar, may face a 'supply shortage' upon its launch. Despite the stablecoin's design to maintain a 1:1 peg with the dollar, Schwartz anticipates significant volatility immediately after its release. He advises investors against succumbing to 'FOMO' (fear of missing out).
Schwartz highlighted that some pre-launch bids for the not-yet-issued RLUSD have artificially inflated its value. A post on the platform X indicated that 1 RLUSD was valued at approximately 511 XRP, equating to $1,244 at current prices, within a Ripple wallet named Xaman. Schwartz remarked that someone appeared willing to pay $1,200 per RLUSD for a small portion, suggesting a desire to be among the first to acquire RLUSD as it enters the market. He reassured that once the supply stabilizes, the price should return to around $1. If it does not, it would indicate a significant issue. Schwartz emphasized that purchasing stablecoins out of FOMO is not a path to wealth.
Previously, Ripple CEO Brad Garlinghouse announced on the X platform that the RLUSD stablecoin had received approval from the New York Department of Financial Services (NYDFS). He also mentioned that a list of exchanges and partners would be available soon.
Schwartz highlighted that some pre-launch bids for the not-yet-issued RLUSD have artificially inflated its value. A post on the platform X indicated that 1 RLUSD was valued at approximately 511 XRP, equating to $1,244 at current prices, within a Ripple wallet named Xaman. Schwartz remarked that someone appeared willing to pay $1,200 per RLUSD for a small portion, suggesting a desire to be among the first to acquire RLUSD as it enters the market. He reassured that once the supply stabilizes, the price should return to around $1. If it does not, it would indicate a significant issue. Schwartz emphasized that purchasing stablecoins out of FOMO is not a path to wealth.
Previously, Ripple CEO Brad Garlinghouse announced on the X platform that the RLUSD stablecoin had received approval from the New York Department of Financial Services (NYDFS). He also mentioned that a list of exchanges and partners would be available soon.
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