Ripple’s RLUSD stablecoin may experience temporary price surges but its value will stabilize at $1 after launch.
David Schwartz urges investors to avoid FOMO and highlights that RLUSD is meant for stability not quick profits.
Ripple’s RLUSD aims to bridge traditional and decentralized finance and enhance cross-border payments and XRP’s utility.
David Schwartz, Ripple's Chief Technology Officer, has advised against purchasing RLUSD out of fear of missing out (FOMO). He emphasized that the stablecoin, which is tied to the US dollar, is not an investment opportunity. The alert was issued following early price surges for RLUSD on the Xaman trading platform.
https://twitter.com/JoelKatz/status/1868329931698245843 Early Price Surges Expected
The price of RLUSD briefly rose to $1,200 per unit, which was a lot more than the $1 goal. This increase occurred because some customers bid excessive prices for a portion of the stablecoin before its formal launch.
Schwartz explained that these early price spikes are a normal part of the market’s adjustment process. He promised investors that once the supply stabilized, the price would revert to $1.
Ripple's RLUSD stablecoin has yet to be officially released, but early market action is already indicating volatility. Schwartz cautioned that price variations are normal in the early phases and should not be misinterpreted as an investment opportunity. The purpose of RLUSD is to maintain stability, not to make quick profits.
Plans for RLUSD
Ripple is planning to launch RLUSD following approval from the New York Department of Financial Services. The stablecoin is intended to supplement Ripple's native cryptocurrency, XRP. It will play an important part in the company's cross-border payment offerings. Ripple aims to deploy RLUSD with XRP to improve payment infrastructure and open up new use cases in both traditional and decentralized finance (DeFi).
Ripple’s entry into the stablecoin market comes at a time of stiff competition. Leading stablecoins, such as Tether's USDT and Circle's USDC, dominate the market. Ripple, however, sees a chance to gain market share. Schwartz forecasts that the stablecoin industry would be worth more than $2 trillion by 2028. This makes RLUSD a major player in the developing digital asset market.
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