Ripple’s Chief Technology Officer, David Schwartz, has issued a warning to investors regarding the impending launch of RLUSD, the company’s USD-pegged stablecoin. He foresees possible supply constraints and significant price fluctuations in the initial stages. Although he predicts that the price will ultimately settle near the intended $1 parity once market forces of supply and demand reach equilibrium, early days may witness substantial swings. Schwartz responded to concerns about pre-launch offers that seemingly inflate the value of RLUSD.
Reports of a bid on a Ripple XRP wallet, Xaman, pricing a minuscule portion of RLUSD at over $1,200 (511 XRP) have emerged. Schwartz attributed such high bids not to genuine market valuation but rather to the novelty-seeking behavior of early adopters eager to hold the first RLUSD tokens. The stablecoin’s launch is imminent, pending final regulatory authorization from the New York Department of Financial Services.
Ripple’s CEO, Brad Garlinghouse, confirmed the receipt of this crucial approval on December 10. The company’s strategic vision involves integrating RLUSD with XRP to bolster its cross-border payment capabilities and furnish liquidity to financial institutions. Ripple’s leadership has reiterated their commitment to institutional clients, with beta testing results suggesting the potential to avert depegging and augment global liquidity, yet investors are urged to refrain from hasty, FOMO-driven decisions.
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