Ripple's CTO, David Schwartz, warned that while there may be a temporary supply shortage when RLUSD launches, causing the price to rise above 1 dollar briefly, the price will soon stabilize as the market adjusts. He urged investors not to fall into the 'FOMO' (Fear of Missing Out) trap regarding the potential initial price fluctuations of this stablecoin.
For those who may not know, Ripple's CEO, Brad Garlinghouse, recently announced that RLUSD has received final approval from the New York Department of Financial Services.
To address the concerns raised about X, Schwartz explained that in the early days of RLUSD, some individuals might be willing to pay an unusually high price, such as 1,200 dollars for a small portion of RLUSD, just to be the first to buy it.
He wrote, 'If you want to spend a lot of money to get a little RLUSD before others do, you can. But please don't expect the price to hold above 1 dollar when things stabilize, which I hope will happen very quickly. Please don't FOMO into a stablecoin! This is not an opportunity to get rich.'
However, he assures that this price increase is temporary, and when supply stabilizes, the price will return to around 1 dollar. He stated that the core purpose of a stablecoin is to maintain a stable price, and any short-term fluctuations will be adjusted by arbitrage traders.
The community is awaiting the launch
The XRP community is excited about the launch of the RLUSD stablecoin. RLUSD is a stablecoin pegged to the US dollar, meaning its value will be maintained at one US dollar. It will be issued on both the XRP Ledger and Ethereum blockchains. Ripple stated it will be fully backed by cash and equivalent reserves, and can be exchanged 1:1 for US dollars.
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