As a seasoned crypto investor with a few battle scars to show for it, I find myself reassured by Ripple CTO David Schwartz’s recent comments regarding RLUSD price fluctuations at launch. Having weathered numerous market storms and witnessed the occasional pump-and-dump scheme, I can attest that such turbulence is an inherent part of this wild frontier.
Ripple CTO warns of RLUSD price fluctuations at launch, assuring investors that price will stabilize at $1 after adjustments.
David Schwartz, Ripple’s Chief Technology Officer, recently alleviated worries about potential price instability for RLUSD, Ripple’s USD-tied stablecoin. In a recent post on platform X on December 15th, Schwartz cautioned about the possibility of “supply scarcities” upon its launch. He explained that initially, the price may not be very steady due to high demand and low supply.
Schwartz highlighted that certain purchasers might pay exceptionally high costs, such as $1,200 for a single slice of RLUSD. These exorbitant prices can be seen in market indicators as what a buyer is willing to pay for a product or service. He mentioned that some buyers might want to participate in the initial token sale of RLUSD, aiming to be among the first linked to it. However, he emphasized that these prices would not last long on the market. As supply increases, the price should quickly return to $1, or even sooner.
Ripple CTO Assures RLUSD Will Return to $1 After Initial Fluctuations
He also stressed that the primary function of a stablecoin is to maintain the stability of the asset’s price. Consequently, if RLUSD retains its position above $1, then there has to be an issue with the market. Schwartz also admitted, that during the initial stages of the product life cycle fluctuations in supply and demand may lead to temporary changes in price. Still, he says he expects these changes to be temporary. Arbitrage traders who make their living by exploiting price discrepancies will probably correct the market soon and bring the price back to standard.
Schwartz advised against the anxiety of not being part of something (FOMO). He urged investors to refrain from buying the RLUSD at high prices with hopes of quick profits. The purpose of this stablecoin is to remain consistent, hence an increase in its short-term price should not be seen as a money-making opportunity. He mentioned that while early adopters might pay fluctuating prices, the intention is to fix it at $1.
After wrapping up, Schwartz shared several thoughts with his audience, the most important being to exercise patience. He further reassured the community that post the launch phase of RLUSD, prices would settle at the intended level. He explained that the fluctuations during the initial days were merely market adjustments. Over the long term, as market conditions solidify, so too should the price of the stablecoin, mirroring its purpose: to be steady and reliable.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2024-12-18 18:36