Ripple chief technology officer David Schwartz says investors should not hope for gains on stablecoins as his firm prepares to launch its new dollar-pegged crypto asset.
In a new post on social media platform X, Schwartz says Ripple USD (RLUSD) may experience supply shortages in the early days of its debut given the pre-market demand for the stablecoin.
“There actually is someone willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD…Maybe someone wants the ‘honor’ of buying the first bit of RLUSD on the DEX (decentralized exchange).”
Schwartz says the price of RLUSD should go back close to $1 when the supply stabilizes.
“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.”
The XRP co-creator says the whole point of stablecoins is to have a steady price so investors should not see these tokens as a way to gain profits.
“Short-term changes in prices due to shortages of supply or demand are certainly possible, especially around launch, but they shouldn’t remain for very long as arbitragers rapidly fix the market. Please don’t FOMO into a stablecoin! This is not an opportunity to get rich.”
Ripple is set to launch RLUSD on Tuesday after receiving the final approval from the New York Department of Financial Services (NYDFS) last week.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
