Ripple CTO’s Warning: Beware of Early RLUSD Volatility!
In a recent post on X (Twitter) dated Dec. 15, Ripple’s Chief Technology Officer, David Schwartz, dropped a cautionary note for crypto enthusiasts about the imminent launch of Ripple’s new stablecoin, RLUSD.
According to Schwartz, the market should brace for a potential “supply shortage” in the early days following RLUSD’s debut, setting the stage for significant volatility despite the token’s design to maintain a 1:1 parity with the US dollar.
A Surprising $1,200 Bid Sparks Speculation
Schwartz highlighted a curious early trading activity: a trader set a whopping $1,200 bid for one RLUSD, which caught the attention of many. This bid valuing RLUSD at approximately 511 XRP worth around $1,244 at current prices — on a Ripple wallet called Xaman. indicated how eager some investors were to secure a piece of Ripple’s stablecoin as it launched.
Schwartz noted that this bid seemed to be driven by collectors’ pride in acquiring the first RLUSD available on the market rather than a genuine market price indicator.
Ripple’s RLUSD Stablecoin Ready for Takeoff—with a Cautionary Tale
This cautionary advice from Schwartz comes as Ripple prepares to officially launch RLUSD, having received the final nod from the New York Department of Financial Services on Dec. 11.
Ripple’s CEO, Brad Garlinghouse, announced that the stablecoin would be launching “soon,” emphasizing that RLUSD was built to be a complementary asset to XRP, Ripple’s native cryptocurrency. According to Garlinghouse, RLUSD would be used to support Ripple’s cross-border payment solutions, especially targeting large institutional players, thereby enhancing liquidity for XRP in the market.
RLUSD and XRP: A Strategic Pairing for Ripple
Ripple sees RLUSD not just as a tool for institutional use but as a crucial component in the broader strategy to integrate stablecoins into the crypto ecosystem. Garlinghouse highlighted that RLUSD and XRP are frequently paired on exchanges, ensuring that RLUSD's price remains constant and does not depreciate against the US dollar. This strategic integration will help Ripple maintain control over RLUSD’s value and provide a reliable option for cross-border payments.
Don’t FOMO Into RLUSD: A Word of Caution from Ripple CTO
“Please don’t FOMO into a stablecoin! This is not an opportunity to get rich, Schwartz warned. The market will correct, and when it does, the value of RLUSD will align more closely with its intended 1:1 parity with the US dollar.” As Ripple’s stablecoin prepares to go live, it’s crucial for investors to understand that RLUSD is a tool designed for stability, not speculation. Schwartz’s message is clear: be cautious, stay informed, and avoid the temptation to “FOMO.”
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