Ripple’s Chief Technology Officer (CTO), David Schwartz, recently addressed the early stages of the RLUSD stablecoin’s launch. The stablecoin has attracted significant interest from the community in recent weeks. Unlike the typical slow activity over weekends, mid-December witnessed a notable crypto market rally, led by Bitcoin reaching a new all-time high. This surge triggered a wave of activity across the sector, while the regulatory landscape also saw developments, including updates from WazirX. RLUSD, Ripple’s stablecoin, has yet to officially launch but has already captured market attention.
In a recent post on X (formerly Twitter), Schwartz shared insights into the stablecoin’s future, noting that initial supply shortages could occur until the market stabilizes. He pointed out instances of individuals purchasing small amounts of RLUSD with substantial capital, which could lead to unrealistic expectations.
Schwartz cautioned against speculative investments in the stablecoin, explaining that its value is expected to stabilize at $1 after any initial fluctuations. He urged investors not to succumb to “fear of missing out” (FOMO), emphasizing that RLUSD is not a get-rich-quick opportunity. In his own words:
“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’s comments were prompted by a market analyst’s screenshot showing RLUSD priced at 511 XRP, sparking FOMO-driven behavior among some investors.
When is RLUSD Launching?
The Ripple team has been preparing for the launch of RLUSD throughout the year. CEO Brad Garlinghouse discussed its development at various events. While there were earlier speculations about a premature launch, Ripple dismissed these rumors and later announced that RLUSD had received approval from the New York Department of Financial Services (NYDFS).
Meanwhile, Ripple has been navigating its long-standing lawsuit with the SEC over the classification of XRP as a security. However, recent news of a leadership change at the SEC has led to a price rally for XRP, reflecting renewed optimism within the cryptocurrency market.
