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The crypto world is attentive to the launch of RLUSD, Ripple’s new stablecoin. However, David Schwartz, CTO of Ripple, shared a crucial message on the X platform aimed at investors, warning of possible price fluctuations during the first days of trading.
As RLUSD goes live, there may be supply shortages in the very early days before the market stabilizes. There actually is someone willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD. Tools will show you the highest price anyone is willing to pay, even if it’s just for a… https://t.co/LOx4rGiiiJ
— David “JoelKatz” Schwartz (@JoelKatz) December 15, 2024
According to Schwartz, with RLUSD beginning its rollout, there could be supply shortage issues in the initial stages. This imbalance could cause anomalously high prices on decentralized markets (DEX).
In fact, he pointed to a record in which a person is willing to pay an extravagant figure of $1,200 for a tiny fraction of an RLUSD. He even highlighted that market analysis tools can show these types of extreme prices, even if they only reflect marginal offers.
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Despite these possible unusual behaviors at the start, Schwartz was categorical in his statement that the price of RLUSD should stabilize very close to its target value of $1 once supply and demand find their equilibrium point.
“If it doesn’t, something is very wrong,” he pointed out, to underline the importance of stability in the operation of any stablecoin.
Warning against FOMO
Schwartz also took the opportunity to warn against FOMO (fear of missing out) among investors. He acknowledged that some people might feel the urge to spend disproportionate amounts of money just to get the first few fractions of RLUSD.
However, he was clear in his position when he warned that this is not an opportunity to get rich quickly. “The purpose of a stablecoin is to have a stable price,” he emphasized.
The CTO explained that although temporal fluctuations are possible, especially around its launch, these should not be prolonged. Arbitrators, actors specialized in finding and taking advantage of market inefficiencies, will play a vital role in correcting any price divergence quickly, functioning as a guarantee that the stablecoin regains its stability.
Implications for the market
Schwartz’s message highlights two key points for crypto investors and analysts. First, although stablecoins by definition should not show significant movements in their price, temporary situations such as those mentioned may arise due to the initial dynamics of supply and demand. Second, those interested in acquiring RLUSD should remain calm and avoid impulsive decisions based on possible price spikes.
For now, all that remains is to closely observe the behavior of RLUSD in the market. This launch will not only be a test for Ripple, but also a reminder to the entire crypto community about the value of patience and the importance of financial education.
Ultimately, the launch of RLUSD marks a key moment for Ripple, but players must remember that the essence of stablecoins is not to generate speculative enthusiasm, but to provide stability and predictability in an often volatile ecosystem.
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