As a seasoned crypto investor with a few battle scars to show for it, I’ve learned that patience is a virtue when it comes to new coin launches. The latest buzz surrounding Ripple’s stablecoin, RLUSD, has certainly caught my attention, but I’m not letting the FOMO take over just yet.
David Schwartz, Ripple’s Chief Technology Officer, suggests that at the onset of Ripple’s U.S. Dollar-linked stablecoin, there might be temporary “supply limitations.” However, he advises potential investors against being swayed by fear of missing out (FOMO).
As an analyst, I shared in a post on Dec 15 that Schwartz anticipates significant volatility for the RippleUSD (RLUSD) stablecoin upon its launch. Interestingly, there are multiple large orders for this token, despite it being engineered to maintain a one-to-one equivalence with the US dollar. This could suggest an intriguing dynamic in the market once it goes live.
He noted that some small initial pre-market bids for the currently unreleased stablecoin were artificially inflating its value before its launch — responding to a post on X, which showed 1 RLUSD being valued at roughly 511 XRP (XRP) — worth $1,244 at current prices — on a Ripple wallet called Xaman.
Schwartz mentioned that there’s an individual ready to spend approximately 1,200 dollars for just a small piece of RLUSD.
Schwartz suggested that the offer appeared like a desire for “the privilege” or “distinction” of being the initial buyer of RLUSD stock to be offered in the marketplace.
However, take comfort in knowing that the cost should nearly return to $1 once the supply has balanced out. If it fails to do so, there might be a significant issue at hand.
“Please don’t FOMO into a stablecoin! This is not an opportunity to get rich.”
On December 11th, Brad Garlinghouse, CEO of Ripple, confirmed that the Regulated Stable USD (RLUSD) had received final approval from the New York Department of Financial Services. According to Ripple’s official account on X, the launch of this stablecoin is imminent.
When RLUSD becomes accessible, Ripple intends to incorporate both RLUSD and XRP into its cross-border payment system to cater to its international clientele, as stated in the announcement of RLUSD’s beta testing phase.
In June, Monica Long, the president of Ripple, noted that RLUSD (Ripple’s USD-pegged stablecoin) was designed to function as a supplement and enhancement to XRP.
Some reports suggest that Ripple views the RLUSD (Ripple-issued USD stablecoin) as advantageous for XRP, as they plan to link RLUSD and XRP together in a trading pair.
By being widely available on various trading platforms, XRP can contribute to a plentiful supply of RLUSD, enhancing liquidity. Moreover, the stability of RLUSD’s price is ensured through strategic pairings, which work to counteract any potential deviations from its pegged value and prevent depegging.
As per Brad Garlinghouse, CEO of Ripple Labs, the main target for RLUSD will be significant institutional investors.
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2024-12-16 05:47