XRP News: Ripple CTO Warns of Early RLUSD Supply Shortage and Price Volatility

Ripple’s CTO, Mr. David Schwartz, has warned that although there may be temporary supply shortages when RLUSD is launched, causing the price to quickly rise above $1, the price will soon stabilize as the market adjusts. He urges investors not to fall into the ‘FOMO’ (Fear of Missing Out) trap regarding the initial price fluctuations of this stablecoin. For those unaware, Ripple’s CEO, Brad Garlinghouse, recently announced that RLUSD has received final approval from the New York Department of Financial Services. In response to concerns raised about X, Schwartz explains that in the early days of RLUSD, some individuals may be willing to pay unusually high prices, such as $1,200 for a small portion of RLUSD, just to be the first to buy it. He wrote, ‘If you want to spend a lot of money to get some RLUSD before anyone else, you can. But don’t expect the price to stay above $1 when everything stabilizes, which I hope will happen very quickly. Please don’t FOMO into a stablecoin! This is not an opportunity to get rich.’ However, he assures that this price increase is temporary, and when supply stabilizes, the price will return to around 1 dollar. He says that the core purpose of a stablecoin is to maintain price stability, and any short-term fluctuations will be adjusted by price differential traders. The community is waiting for the launch The XRP community is very excited about the launch of the RLUSD stablecoin. RLUSD is a stablecoin pegged to the US dollar, meaning its value will stay at one US dollar. It will be issued on both the XRP Ledger and Ethereum blockchains. Ripple has stated that it will be fully backed by cash and equivalent reserves, and can be exchanged 1:1 for US dollars. DYOR! #Write2Win #Write&Earn $XRP {spot}(XRPUSDT)