Ripple CTO David Schwartz has advised potential investors not to engage in panic-driven purchases of the Ripple USD (RLUSD) stablecoin before its official launch. He warned of a possible initial supply shortage, which could cause price fluctuations for the dollar-pegged asset. Pre-launch offers for RLUSD have reportedly reached as high as 511 XRP, equivalent to $1,200.
Schwartz cautioned that early buyers might pay inflated prices simply for the novelty of owning the first RLUSD tokens. He reassured investors that the stablecoin’s price would remain near $1, as expected from any well-functioning stable asset. 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.
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