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According to Odaily, Ripple's Chief Technology Officer, David Schwartz, has cautioned that the company's new stablecoin, RippleUSD (RLUSD), pegged to the US dollar, may face a 'supply shortage' upon its launch. Despite the stablecoin's design to maintain a 1:1 peg with the dollar, Schwartz anticipates significant volatility immediately after its release. He advises investors against succumbing to 'FOMO' (fear of missing out).

Schwartz highlighted that some pre-launch bids for the not-yet-issued RLUSD have artificially inflated its value. A post on the platform X indicated that 1 RLUSD was valued at approximately 511 XRP, equating to $1,244 at current prices, within a Ripple wallet named Xaman. Schwartz remarked that someone appeared willing to pay $1,200 per RLUSD for a small portion, suggesting a desire to be among the first to acquire RLUSD as it enters the market. He reassured that once the supply stabilizes, the price should return to around $1. If it does not, it would indicate a significant issue. Schwartz emphasized that purchasing stablecoins out of FOMO is not a path to wealth.

Previously, Ripple CEO Brad Garlinghouse announced on the X platform that the RLUSD stablecoin had received approval from the New York Department of Financial Services (NYDFS). He also mentioned that a list of exchanges and partners would be available soon.