Investors seem to be keenly waiting for the launch of Ripple’s native stablecoin, RippleUSD (RLUSD).
Background
- A week back, Ripple CEO Brad Garlinghouse announced that RLUSD had received its final approval from the New York Department of Financial Services
- The Ripple team confirmed that the asset would be launching “soon”
- Ripple’s Chief Technology Officer, David Schwartz affirmed that there could be “supply shortages” in the early days of the launch
- However, he cautioned investors not to 'FOMO'
Why should you pay attention?
- Schwartz highlighted that one market participant has set a $1,200 bid for Ripple’s native stablecoin
- Traders can expect short-term changes in prices due to the imbalance of supply and demand, especially around launch
- Nevertheless, that will likely not sustain for very long as arbitrageurs will likely end up fixing the market
Who said what?
- Schwartz said,
“Tools will show you the highest price anyone is willing to pay, even if it's just for a tiny bit. Maybe someone wants the "honor" of buying the first bit of RLUSD on the DEX”
- He told users that if they wish to spend “a lot of money” to get a tiny bit of RLUSD before others, they can
- However, he warned not to expect the price to stay over $1 once things stabilize
- He affirmed,
“Rest assured, the price will come back to very close to $1 as soon as supply stabilizes. Please don't FOMO into a stablecoin! This is not an opportunity to get rich”
Zooming out
- Once RLUSD goes live, Ripple is looking to use both RLUSD and XRP in its cross-border payments solution
- The asset has been built to be “complementary and additive” to Ripple’s native asset, XRP
