December 22, 2024
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Ripple CTO admitted RLUSD volatility after launch

After the launch of the RippleUSD (RLUSD) stablecoin, excessive volatility can be expected, it is important to avoid FOMO. This was stated by the issuer’s CTO David Schwartz. As RLUSD goes live, there may be supply shortages in the very early days before the market stabilizes. There actually is someone willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD. Tools will show you […]”, — write: businessua.com.ua

Ripple CTO Admits RLUSD Volatility After Launch - INFBusiness

After the launch of the RippleUSD (RLUSD) stablecoin, excessive volatility can be expected, it is important to avoid FOMO. This was stated by the issuer’s CTO David Schwartz.

Schwartz did not rule out a shortage of the token against the background of “large orders”, but in the future the price will return to parity with the US dollar.

The top manager commented on the report of the willingness of a user with the nickname Xaman to spend 511 XRP (~$1244) for “the honor of buying the first bit of RLUSD on DEX.”

“The price won’t stay above $1 as soon as the situation stabilizes.” […] will happen very quickly [через дії арбітражних трейдерів]. […] Please don’t FOMO on stablecoins. This is not an opportunity to get rich,” he urged.

Speaking to Cointelegraph, Axelar co-founder Georgios Vlahos predicted an increase in demand for XRP after the launch of RLUSD in 2025, as transactions and money transfers will take place on the XRP Ledger (XRPL) and the XRP-EVM sidechain.

“XRP holders will benefit because you’re burning some tokens every time you make a transaction,” he explained.

On December 3, against the background of increased activity of whales, the XRP rate renewed a multi-year high at the level of $2,909.

At the time of writing, the price is $2.4, with a market capitalization of $137.39 billion.

On December 10, the New York Department of Financial Services approved RLUSD for trading.

The list of platforms includes Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA and Bullish. Liquidity will be provided by market makers B2C2 and Keyrock.

As a reminder, Ripple announced the start of testing the RLUSD stablecoin in April. According to the company’s CEO, Brad Garlinghouse, this asset, suitable in particular for payments, RWA and DeFi, will become “the gold standard for the corporate sector”.

With the approval of the stablecoin, Ripple will not abandon XRP. According to previous announcements, both coins will be used for international payments.

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