Ripple Warns Of RLUSD Scarcity, 1 RLUSD worth 511 XRP

Olumide Adesina•Monday, December 16, 2024•2 min read

David Schwartz, Ripple’s chief technology officer, warns investors not to be “FOMO” about possible “supply shortages” in the early going of the US dollar-pegged stablecoin.

X, Schwartz stated that even though the RippleUSD (RLUSD) stablecoin is intended to maintain a 1:1 parity with the US dollar, he anticipates significant volatility for the token right after launch, with multiple large orders for the digital asset

He pointed out that a few modest pre-market bids for the stablecoin, which has yet to be released, were inflating its value before its launch.

This was a reaction to a post on X that revealed that 1 RLUSD was worth about 511 XRP (XRP), or $1,244 at today’s exchange rates, on a Ripple wallet called Xaman. According to Schwartz, “someone is willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD.”.

According to Schwartz, the bid indicated that the buyer desired “the honor” of purchasing the first piece of RLUSD to be offered for sale. However, you can be confident that when supply stabilizes, the price will return to nearly $1. “There is a serious problem if it doesn’t,” he stated. “Please refrain from investing in stablecoins out of FOMO; this is not a chance to become wealthy. On December. 11. The official Ripple account on X stated that the stablecoin would launch “soon.”

Ripple CEO Brad Garlinghouse also announced that RLUSD had received its final approval from the New York Department of Financial Services. “.

Ripple intends to use both RLUSD and XRP in its cross-border payments solution once it becomes available to serve its global clientele. Monica Long, the president of Ripple, stated in June that RLUSD was designed to be “complementary and additive” to XRP.

Some sources claim that because RLUSD and XRP will be paired, Ripple views RLUSD as “beneficial” for XRP. Although XRP’s substantial availability on exchanges will contribute to RLUSD’s increased liquidity, pairing will keep the stablecoin’s price steady to avoid de-pegging.

Brad Garlinghouse, CEO of Ripple Labs, stated that RLUSD will mainly target big institutional players. According to Schwartz, “someone is willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD.”.

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Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.