Ripple CTO Warns: RLUSD Stablecoin Is Not a Profit Opportunity
As #Ripple prepares to launch its new Ripple USD (RLUSD) stablecoin, Chief Technology Officer (CTO) David Schwartz has warned investors not to expect profits from the dollar peg.
Schwartz, chief technology officer (CTO), emphasized that a stable coin is meant for price stability, not speculative profits.
Schwartz said that during the launch of RLUSD, demand exceeded supply and there were abnormal movements in the market. Demand exceeded supply, which could lead to unusual movements in the market, he said. For example, he noted that one user purchased several RLUSD tokens on the #Decentralized Exchange (DEX) at an inflated price of $1,200. While this may reflect enthusiasm for the first transaction, such inflated valuations are unlikely to last long, he explained.
the Ripple CTO assured that the price of RLUSD will normalize at around US$1 once the market adjusts to sufficient supply. Early adopters may spend a lot of money on the #token at first, but its price will soon return to the target price of the stablecoin, he explained.
Schwartz also mentioned the possibility of short-term price fluctuations, which he attributed to the imbalance between supply and demand caused by the launch. He attributed this to the launch. However, he stressed that the arbitrage mechanism will soon stabilize the market. It is designed to maintain stable prices, not to make profits.
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