2024-12-16 14:30 |
Ripple CTO David Schwartz has urged potential investors to avoid panic-driven purchases of the Ripple USD (RLUSD) stablecoin before its official launch.
In a Dec. 15 post on X (formerly Twitter), Schwartz warned of a possible initial supply shortage, which could cause price fluctuations for the dollar-pegged asset.
This caution comes as pre-launch offers for RLUSD have reportedly reached as high as 511 XRP, equivalent to $1,200. He noted that early buyers might pay inflated prices simply for the novelty of owning the first RLUSD tokens.
The CTO explained that some buyers might pay a premium for the perceived “honor” of securing the earliest trades on Ripple’s decentralized exchange. Despite the hype, Schwartz reassured investors that the stablecoin’s price would remain near $1, as expected from any well-functioning stable asset.
Schwartz stated:
“If you want to spend a lot of money to get a tiny bit of RLUSD before anyone else does, you can. But please don’t expect the price to stay over $1 once things stabilize, which I expect they will do very quickly.”
Schwartz also emphasized that those paying excessive prices should not anticipate long-term gains. A stablecoin’s primary function is maintaining parity with its fiat counterpart, such as the US dollar. He advised against fear-driven purchases, stressing that RLUSD is not designed as a speculative asset.
He added:
“Please don’t FOMO into a stablecoin! This is not an opportunity to get rich.”
Ripple intends for RLUSD to complement its XRP token by enhancing institutional transactions and cross-border payments. However, with the stablecoin market already crowded with giants like Tether’s USDT and Circle’s USDC, RLUSD would face tough competition upon its debut.
Last week, the New York State Department of Financial Services (NYDFS) approved the digital asset after unexpected delays in the application process. Ripple CEO Brad Garlinghouse has since confirmed that the stablecoin is on track for release at an undisclosed date.
The post Ripple RLUSD investors warned against FOMO as stablecoin trades well above peg pre-launch appeared first on CryptoSlate.
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