The closer we get to the end of the year, the more heightened are the expectations of crypto market participants, and in particular the XRP community, about the release of the Ripple USD (RLUSD) stablecoin from the San Francisco-based crypto company of the same name. Previously, Ripple’s CEO said that RLUSD is expected to be released in 2024, and with two weeks left until the new year, there is less and less time for the release.
Ripple USD has already received listings on major exchanges and wallets in the XRP ecosystem, where, however, some oddities have been noticed with the pricing of the stablecoin. One enthusiast noticed that the price for one RLUSD is 511 XRP, which is equivalent to $1,231.
David Schwartz, Ripple’s CTO, volunteered to explain what is going on and why a stablecoin pegged to the dollar costs 123.1% more than it should. For example, Schwartz explained that in the first few days of RLUSD and until the market stabilizes, there may be a shortage of supply, and there may be those who are willing to pay $1,200 for a tiny share of one RLUSD.
The tools will show you the highest price someone is willing to pay, even if it is just a tiny fraction. Maybe someone wants the honor of buying the first bit of Ripple USD on DEX, Schwartz said.
“Do not FOMO”
But rest assured, the price will return to the $1 per RLUSD mark once the supply stabilizes, according to Ripple’s CTO. If that does not happen, something is seriously wrong, Schwartz warns.
In addition, the XRPL architect stated that if someone wants to spend a lot of money to get a tiny piece of RLUSD before anyone else, do not expect the price to stay above $1 once the situation stabilizes, which he believes will happen very quickly.
As Schwartz explains, the whole point of a stablecoin is a stable price, and short-term price changes due to lack of supply or demand are certainly possible, especially during the launch period, but they should not last very long as arbitrageurs will quickly correct the market situation.
“Please do not get FOMO on stable coins! This is not an opportunity to get rich,” concludes Ripple’s CTO.
