Ripple’s much-awaited stablecoin, RLUSD is expected to launch soon, but Ripple’s CTO David Schwartz believes the launch could come with some volatility.
While RLUSD is expected to maintain a stable 1:1 value against the US dollar, Schwartz warns that early supply shortages might cause price swings. In his X post, Schwartz said that some eager buyers have already bid as much as $1,200 for just a small fraction of RLUSD.
He thinks the reason behind this high price is excitement and satisfaction of being among the very few who are going to buy RLUSD, but the investor doesn’t have to panic as Schwartz reminds that “don’t FOMO into this”.
And he is sure once the market normalizes and supply gets out of its way, the price should settle down around $1, if it doesn’t so something is seriously wrong with the system.
Schwartz added, responding to a Twitter post, which showed the value of 1 RLUSD is equal to 511 XRP, worth $1244 at current prices, on Xaman- a ripple wallet.Â
Designed to assist Ripple in its cross-border payments, RLSUD has already secured approval from the New York Department of Financial Services. Schwartz accepts that at the beginning things might look a little bit bumpy but is certain that stablecoin will, in time, hold $1 as arbitrage traders will always correct the balance of any prices.
The launch of RLUSD is also expected to benefit XRP since both tokens will be used together in Ripple’s payment network. XRP has been on a tear recently, hitting a seven-year high of $2.74, though it’s cooled off a bit since then.
Ultimately, Ripple’s team wants investors to remember that a stablecoin’s main goal is stability. So, while the launch might bring some excitement and price fluctuations, buying RLUSD at sky-high prices won’t make anyone rich.
Also Read: Is XRP Price Poised to Reach $3 with an Increased Volatility?
