30s Summary

Ripple’s tech guru, David Schwartz, warns of a possible “shortage” of the RLUSD, Ripple’s US Dollar-linked cryptocurrency, just post-launch. Large purchases could cause initial price turbulence, even though the currency is designed to be in 1:1 ratio with US dollars. High bids seem to vie for first purchaser claims, but the price should level out at about $1 once stabilized. Ripple’s international payments system will include RLUSD and XRP to create global stable-currency potential. RLUSD will mainly cater to bigger institutional players.

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David Schwartz, Ripple’s tech guru, has given a heads-up about possible “supply shortages” for Ripple’s new US Dollar-linked cryptocurrency in the early days post-launch. He advises people not to panic buy or “FOMO.”

In a recent online post, Schwartz explained that Ripple’s US Dollar Cryptocurrency, aka RippleUSD or RLUSD, might experience a fair bit of turbulence in price right after launch, which could be affected by large purchases of the token.

Despite RLUSD being designed to match the US dollar in a 1:1 ratio, Schwartz noticed that before the launch, some initial small-scale offers for the unreleased currency were inflating its value artificially. He even mentioned how someone was willing to shell out a hefty $1,200 for a minuscule part of one RLUSD.

He pointed out that the inflated bid seemed like someone vying for the claim of being the first purchaser when RLUSD goes on sale. Nevertheless, he assured everyone that the price will level out around $1 as soon as everything stabilizes, and if not, it’s a sign that something’s wrong.

Ripple’s head honcho, Brad Garlinghouse, announced on December 11 that RLUSD got the green light from the New York Department of Financial Services and will be making its debut soon.

Ripple has plans to use RLUSD, coupled with its other currency XRP, for its international payments system to cater to global customers once it’s launched. In fact, Ripple sees a lot of potential in pairing RLUSD with XRP which can bring stability to the new cryptocurrency’s price.

As per Ripple’s CEO, RLUSD’s focus will mainly be larger institutional players.