Stablecoin

FOMO

Ripple’s Chief Technology Officer, David Schwartz, has <a href="https://x.com/JoelKatz/status/1868329931698245843" rel="noopener noreferrer nofollow">issued</a> a cautionary note to investors ahead of the <a href="https://thecoinrise.com/ripple-cto-confident-rlusd-might-launch-this-year/" rel="noopener noreferrer nofollow">launch of RLUSD, Ripple’s U.S. dollar-pegged stablecoin</a>. In a December 15 post on X, Schwartz acknowledged concerns about possible price volatility during RLUSD’s debut, citing potential supply shortages as a factor that could temporarily push its price above the $1 peg.
Ripple first announced RLUSD in August, revealing plans to test the stablecoin on both the XRP Ledger (XRPL) and Ethereum mainnet. The company <a href="https://ripple.com/insights/a-new-era-of-stablecoins-ripple-usd-begins-testing-on-the-xrp-ledger-mainnet/?utm_source=x&amp;utm_medium=organic_social&amp;utm_campaign=cont-blog-global-stablecoin-mainnetdeployment-all-2024-q3&amp;utm_content=thread_static" rel="noopener noreferrer nofollow">envisions</a> RLUSD as a cornerstone for cross-border payment solutions, aimed at streamlining transactions for global users. However, an official release date for the stablecoin remains undisclosed.
Schwartz highlighted early pre-market bids valuing RLUSD as high as $1,244—a staggering 1,200% premium over its intended parity. He attributed this enthusiasm to buyers seeking the prestige of acquiring the first RLUSD units, but he warned that these inflated valuations are unsustainable.
<h2 id="span-style-font-weight-400-market-dynamics-to-drive-rlusd-stability-span">Market Dynamics to Drive RLUSD Stability</h2>
Despite the initial hype, Schwartz reassured investors that arbitragers would play a crucial role in normalizing RLUSD’s price. By buying at lower prices and selling at higher ones, arbitragers are expected to restore RLUSD to its $1 peg once supply stabilizes.
“Please don’t FOMO into a stablecoin! This is not an opportunity to get rich,” Schwartz cautioned, emphasizing that RLUSD is designed for price stability, not speculation. He urged prospective investors to remain patient and avoid overpaying during the token’s initial market phase.
The timing of this warning coincides with <a href="https://thecoinrise.com/ripple-rlusd-stablecoin-poised-for-nydfs-approval-amid-market-anticipation/" rel="noopener noreferrer nofollow">RLUSD’s recent regulatory approval</a> by the New York Department of Financial Services, clearing the way for its official rollout. Schwartz’s message underscores Ripple’s commitment to transparency as it navigates the challenges of introducing a stablecoin to the competitive digital asset market.
<h2 id="span-style-font-weight-400-xrp-s-recent-price-surge-span">XRP’s Recent Price Surge</h2>
While RLUSD garners attention, <a href="https://thecoinrise.com/xrp-surges-as-major-exchange-listing-and-ripple-developments-fuel-optimism/" rel="noopener noreferrer nofollow">Ripple’s native token XRP has been making headlines</a> of its own. Earlier this month, XRP surged to $2.74, its highest price since January 2018. This represents a remarkable fivefold increase over the past 30 days, signaling renewed investor interest and optimism surrounding Ripple’s ecosystem.
As Ripple prepares to introduce RLUSD, the company’s focus remains on delivering a stable and reliable product.
The post <a href="https://thecoinrise.com/ripple-cto-warns-of-rlusd-stablecoin-price-volatility-ahead-of-launch/" rel="noopener noreferrer nofollow">Ripple CTO Warns of RLUSD Stablecoin Price Volatility Ahead of Launch</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Ripple CTO Warns of RLUSD Stablecoin Price Volatility Ahead of Launch

Table of Contents

TheCoinrise Media

Other articles published on Dec 16, 2024

BREAKING: Coinbase Announces New Altcoin Listing During Massive Bull Rally

Pepeto Introduces Advanced Features for Memecoin Enthusiasts

Sudeng Falls 49%, Bonk Turns Resistance into Support, and BTFD Coin Sizzles Among the Best Meme C...

Bitcoin Hashrate Peaks at 805 EH/s as BTC Surmount $100K

Trump’s WLFI Invests $45M in Crypto

Bitcoin Hits $106K as Trump’s Reserve Plan Sparks Crypto Frenzy

Join our free newsletter for daily crypto updates!