Ripple’s Chief Technology Officer, David Schwartz, has warned crypto enthusiasts and investors about potential early volatility and supply shortages surrounding Ripple’s upcoming US dollar-pegged stablecoin, RLUSD, and has asked them ‘not to FOMO’.
Ripple CTO: Do Not FOMO For RLUSD Launch
In a post on X, Schwartz has requested the crypto community to refrain from any fear-of-missing-out (FOMO) behavior as the stablecoin RLUSD is all set to enter the market.
As RLUSD goes live, there may be supply shortages in the very early days before the market stabilizes. There actually is someone willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD. Tools will show you the highest price anyone is willing to pay, even if it’s just for a… https://t.co/LOx4rGiiiJ
— David “JoelKatz” Schwartz (@JoelKatz) December 15, 2024
Schwartz highlighted that some pre-launch activity had artificially inflated RLUSD’s value. Responding to a post showing RLUSD priced at nearly 511 XRP (worth $1,229.78 at current rates) on a Ripple wallet, he noted that the inflated value seemed to be a ‘guess’ rather than an indicator of the token’s true value.
“There actually is someone willing to pay $1,200 per RLUSD for a tiny fraction,” Schwartz said, adding that such bids appeared to reflect a desire for “the honor” of being the first to acquire RLUSD. He reassured users that the price would stabilize around $1 as supply normalizes. “If it doesn’t, something is very seriously wrong,” he warned.
Moreover, Schwartz also said that RLUSD is not an investment choice meant to get rich, and added, “Please don’t FOMO into a stablecoin!”
He reiterated his assurance that the whole point of a stablecoin is to have a stable price and short-term fluctuations in prices due to shortages of supply or demand are something that is certainly possible, especially around launch, but they shouldn’t remain for very long as arbitragers rapidly fix the market.
Investors are especially eager for RLUSD launch after Ripple CEO Brad Garlinghouse announced that RLUSD received final approval from the New York Department of Financial Services.
Meanwhile, Ripple’s native token , XRP is currently quoted at $2.41 after a dip of 0.96%, and the early morning price value of $2.416.
The market cap for $XRP has decreased by 0.94% to $137.99 billion. Meanwhile, the 24-hour market volume for $XRP has increased by 4.61% to $6.75 billion, indicating a selling pressure.
Also Read: Ripple’s XRP to be Listed on Arkham Exchange, XRP Price Surge to $3?
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