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Ripple CTO warns against FOMO as RLUSD stablecoin launch price skyrockets. RLUSD is pegged to the US dollar and competes with USDT and USDC.
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The launch of Ripple's RLUSD stablecoin could result in early supply shortages that could lead to temporary price spikes, with some buyers potentially paying more than the $1 target. David Schwartz, Ripple's CTO, advised against buying out of FOMO, stressing that this is not an investment opportunity.
The warning was issued after members of the crypto community discovered that RLUSD was listed at $1,200 per unit on the Xaman trading platform, far above the planned fixed price of $1. Ta.
“In fact, there are people who are willing to pay $1,200/RLUSD for just a fraction of 1 RLUSD.The tool is designed to give everyone the best price they are willing to pay, even if it is just a small amount. “Maybe someone wants the 'honor' of buying the first bit of RLUSD on a DEX,” Schwartz explained.
He said these price increases are expected to be short-lived. Once RLUSD supply stabilizes, the price should quickly return to its intended peg around $1.
Schwartz reiterated that the purpose of stablecoins is to maintain stable prices and is not a speculative asset for quick profits.
“Don’t FOMO into stablecoins! This is not an opportunity to get rich,” he stressed.
Ripple plans to launch a stablecoin after receiving final approval from the New York Department of Financial Services. According to Ripple CEO Brad Garlinghouse, the stablecoin will soon be available on platforms partnered with Ripple.
Designed to be pegged to the US dollar, RLUSD has undergone rigorous testing on both the XRP Ledger and Ethereum. The stablecoin is intended to complement Ripple's native crypto asset, XRP.
With its new services, Ripple aims to bridge the gap between traditional finance and decentralized finance (DeFi). This is expected to strengthen the payments infrastructure and enable a wider range of use cases within the Ripple network.
According to CoinGecko, by entering the stablecoin market, Ripple will join industry giants such as Tether's USDT and Circle's USDC, which currently dominate the stablecoin market with market capitalizations of over $140 billion and $42 billion, respectively. There will be competition.
Despite intense competition, Ripple believes there is an opportunity for reliable players to gain market share. Schwartz predicts that the stablecoin market could exceed $2 trillion by 2028.
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