Ripple’s Chief Technology Officer, David Schwartz, has issued a warning concerning the upcoming launch of Ripple’s RLUSD stablecoin. Schwartz anticipates supply shortages and price volatility in the early trading days, despite the token’s intended parity with the US dollar.
In a recent post, Schwartz stated that some traders had already submitted excessive offers for RLUSD, with one offer pricing the stablecoin at $1,200. He referred to such efforts as speculative attempts to obtain the “honor” of owning the first RLUSD token. However, he cautioned investors to avoid succumbing to Fear of Missing Out (FOMO) during this time, stating that the token’s price will stabilize near $1 as supply grows.
“The price might briefly spike due to limited availability,” Schwartz added, “but it will return to $1 as the market corrects itself.”If it doesn’t, something is very wrong.”
Ripple expects RLUSD, which has already received regulatory approval, to play a significant role in its cross-border payment solutions alongside XRP. Schwartz believes that combining RLUSD with XRP will increase liquidity and assure price stability, even in unpredictable market conditions.
Ripple’s leadership has stated that RLUSD complements, rather than replaces, XRP, which serves as the backbone for transactions on the XRP Ledger. Schwartz highlighted the importance of XRP in preserving the network’s security and operation.
As the launch date approaches, Ripple has positioned RLUSD as a safe and dependable option for institutional players while cautioning ordinary investors against speculative activity. Schwartz ended with a clear message: “The goal of a stablecoin is price stability.” Avoid viewing this as a rapid wealth accumulation opportunity.
