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Ripple’s CTO, David Schwartz, anticipates potential “supply shortage” at the start of the new US-Dollar-pegged stablecoin, RippleUSD (RLUSD), launch. However, he reassures that the coin’s price will stabilize to a 1:1 ratio with the USD shortly afterwards, warning against FOMO behavior. The stablecoin was recently cleared for launch by the New York Department of Financial Services and will be utilized in synergy with XRP for Ripple’s global payment method. High-ranking Ripple officials have suggested RLUSD could be beneficial for XRP as they will be paired together.
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David Schwartz, the top tech guy at Ripple, reckons there might be a bit of a “supply shortage” when Ripple’s new US-Dollar-pegged stablecoin first hits. However, he advises folks not to get caught up in the frenzy.
On Dec. 15, Schwartz mentioned that Ripple’s new stablecoin, RippleUSD (RLUSD), might be a bit topsy-turvy after launch with a ton of big orders coming in. Even though the stablecoin is designed to keep a 1:1 ratio with the US dollar, things might go haywire at the start.
He also pointed out some small pre-launch orders of the stablecoin that were pushing its price higher than it should be. There’s even a post circling around that shows 1 RLUSD being valued at a massive 511 XRP (XRP), equivalent to $1,244 on a Ripple wallet called Xaman.
“There is someone out there willing to fork over $1,200/RLUSD for a tiny amount of one RLUSD,” Schwartz said. He also mentioned that the offer seemed like someone trying to grab the bragging rights for buying the first bit of RLUSD.
“But don’t worry, the price will sort itself out close to $1 when the supply is steady. If it doesn’t, something’s really off,” he added. He also gave a word of caution: “Don’t catch FOMO over a stablecoin! This ain’t a get-rich-quick deal.”
On Dec. 11, Ripple’s CEO, Brad Garlinghouse, announced that RLUSD had cleared the last hurdle from the New York Department of Financial Services and would be launching soon.
Once RLUSD is ready, Ripple wants to use it alongside XRP for its global payment solution. The company shared these plans when they announced testing for RLUSD.
In June, Ripple’s boss, Monica Long, mentioned that RLUSD was designed to work well with XRP. Some insiders reckon Ripple sees RLUSD being a good thing for XRP, as they’ll be paired together.
While XRP will help RLUSD get a good footing on exchanges, the stablecoin’s price will also be steadied by pairing to prevent devaluing. Ripple’s CEO, Brad Garlinghouse, stated that RLUSD will primarily focus on big institutional players.