David Schwartz is the CTO of Ripple and has warned potential investors against buying Ripple USD(RLUSD) before its launch.
Schwartz posted on X, formerly Twitter, on Dec. 15, warning of a potential shortage in the initial supply that could result in price changes for this dollar-pegged investment.
The caution is a result of pre-launch offers that have reportedly reached 511 XRP or $1,200. He warned that some early buyers could pay exorbitant prices for owning the very first RLUSD tokens.
CTOs explained to buyers that they might be willing to pay more for perceived quality. “honor” of securing the earliest trades on Ripple’s decentralized exchange. Despite the hype, Schwartz reassured investors that the stablecoin’s price would remain near $1, as expected from any well-functioning stable asset.
Schwartz stated:
“If you want to spend a lot of money to get a tiny bit of RLUSD before anyone else does, you can. But please don’t expect the price to stay over $1 once things stabilize, which I expect they will do very quickly.”
Schwartz also stressed that people who pay excessive prices shouldn’t expect long-term profits. A stablecoin’s primary function is maintaining parity with its fiat counterpart, such as the US dollar. He warned against buying RLUSD out of fear, saying that it is not a speculative investment.
Then he added:
“Please don’t FOMO into a stablecoin! This is not an opportunity to get rich.”
Ripple plans to use RLUSD in conjunction with its XRP cryptocurrency by enhancing institution transactions and international payments. However, with the stablecoin market already crowded with giants like Tether’s USDT and Circle’s USDC, RLUSD would face tough competition upon its debut.
The New York State Department of Financial Services, or NYDFS (New York State Department of Financial Services), released a statement last week. You are able to approve this After unexpected delays, the digital asset has been released. Ripple’s Brad Garlinghouse confirmed the release date of stablecoin at an unspecified time.
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