The XRP community eagerly awaits the launch of Ripple’s stablecoin, Ripple USD (RLUSD), as the year-end approaches. Ripple’s CEO previously confirmed RLUSD’s release in 2024, leaving only a few weeks for the anticipated launch. Major exchanges and XRP ecosystem wallets have already listed RLUSD, fueling excitement and speculation.
Unexpected Price Surge Raises Questions
Crypto enthusiasts noticed an unusual price surge for RLUSD. While the stablecoin should be pegged to $1, one RLUSD was priced at 511 XRP, equivalent to $1,231. This 123.1% increase puzzled many users, prompting Ripple’s CTO, David Schwartz, to provide clarity.
Schwartz explained that during RLUSD’s early days, market imbalances can occur. Supply may be limited, while demand from eager buyers can drive up the price. In such cases, even a small fraction of RLUSD could cost a premium.
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Schwartz noted that decentralized exchange (DEX) tools display the highest offer price, even if it’s for a minimal portion. This may result in inflated price figures.
Price Expected to Normalize Soon
Schwartz assured users that RLUSD’s price would return to $1 once supply stabilizes. If it does not, he warned that something could be seriously wrong. He urged caution, emphasizing that short-term price surges are common during launches but should not persist.
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Arbitrage traders would likely step in to correct any mispricing. Schwartz advised users not to chase inflated prices, stressing that stablecoins are meant to maintain a steady value.
Early buyers may seek the prestige of owning the “first piece” of RLUSD, but Schwartz cautioned against this approach. “Please do not get FOMO on stable coins! This is not an opportunity to get rich,” he concluded.
