David Schwartz, Ripple’s CTO, issued a warning regarding potential price volatility for RLUSD, a new USD-pegged stablecoin. This comes in when the RLUSD is heading toward its market debut while Ripple Labs gains regulatory clarity in the United States.
Bullish sentiments emerging from investors for Ripple can be seen in the recent XRP price action. Ripple’s native crypto price has surged by 142% in the last 30 days and more than 335% over the past 60 days. A major boost came in for the blockchain firm after US Securities and Exchange Commission chair Gensler decided to step down after Donald Trump’s presidential election win.
Ripple CTO spots risk among investors
Schwartz in a post addressed the risk of RLUSD trading above its $1 parity due to early supply shortages. He cited that pre-market bids valuing RLUSD as high as $1,200 are driven by buyer excitement. He added that the tools will show you the highest price that anyone is willing to pay, even if it’s just for a tiny bit. He suggested that this may be someone who wants to brag about the honor of buying the first bit of RLUSD on the DEX.
The Ripple CTO clarified that such inflated prices would be short-lived and stated that the price would come back to very close to $1 as soon as supply stabilizes. He cautioned that If it doesn’t happen then something is seriously very wrong.
He led out a warning and clarified that if one wants to spend a lot of money to get a tiny bit of RLUSD before anyone else does, they can. However, they don’t need to expect the price to stay over $1 once things stabilize.
Schwartz also urged investors not to FOMO into RLUSD and highlighted that this is not an opportunity to get rich. He further added, “Please remember, that a stablecoin’s purpose is to have a stable price.”
Ripple riding the bullish wave
Ripple plans to use RLUSD to power cross-border payments on XRP Ledger (XRPL) and Ethereum. The New York Department of Financial Services approved the stablecoin on December 11, but a launch date has not been announced yet.
Meanwhile, XRP price has surged to a seven-year high of $2.74, marking a fivefold increase in just 30 days. This rally marks renewed investor confidence in the ecosystem. XRP has beaten Bitcoin (BTC) and other major cryptos with a massive 290% year-to-date (YTD) jump. XRP is trading at an average price of $2.39, at press time. Its 24-hour trading volume is up by 67% to stand at $64.71 billion.
With ongoing bullish momentum for Ripple, XRP has managed to climb up in the tally of the biggest cryptos. XRP displaced Solana (SOL) and BNB to bag the 4th spot in the rankings. It is holding a market cap of $136.3 billion, standing just short of Tether (USDT).
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This articles is written by : Fady Askharoun Samy Askharoun
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