The Ripple CTO warns of supply shortages in the early days of the stablecoin due to large orders
Ripple's CTO, David Schwartz, warned that RippleUSD (RLUSD), a US dollar-pegged stablecoin, may debut with supply constraints.
Schwartz disclosed pre-market speculative bids for RLUSD, some of which inflated its value.
Around 511 XRP for 1 RLUSD
He reacted to a snapshot on X displaying a bid for 1 RLUSD for 511 XRP, or $1,244 at current XRP rates, on Xaman, a Ripple-linked wallet.
Schwartz dismissed the peculiarity, assuming a user wanted “the honor” of buying RLUSD first.
“Once supply stabilizes, the price will return to near $1. Unless it does, something is badly wrong, he wrote.
Please avoid stablecoin FOMO! This is no chance to make rich.”
On December 11, CEO Brad Garlinghouse said that the New York Department of Financial Services has approved RLUSD's issue, boosting Ripple's goals.
The official Ripple X account said RLUSD will debut “coming soon.”
Ripple's own cryptocurrency, XRP, and RLUSD will power its cross-border payments strategy.
Integrating the stablecoin into Ripple's payments network improves liquidity and reduces depegging risk.
Ripple President Monica Long called RLUSD “complementary and additive” to XRP.
Industry insiders perceive it as a smart move to boost XRP's payments ecosystem significance.
Ripple hopes to boost stablecoin liquidity by coupling RLUSD with XRP, which is widely available on exchanges.
RLUSD CEO Brad Garlinghouse said institutional players would be its main target, signaling a purposeful drive toward significant financial market participants.
Following speculations of a meeting with President-elect Donald Trump, Ripple Labs CEO Brad Garlinghouse was criticized for promoting XRP and central bank digital currencies.
Former Messari CEO Ryan Selkis accused Garlinghouse of “shilling XRP and CBDC implementations.”
Speculation regarding the meeting's influence in the demonstration has fueled the dispute.
