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Ripple CTO Explains Why Ripple Stablecoin RLUSD May Cost More Than $1
In a recent statement, Ripple’s Chief Technology Officer (CTO), David Schwartz, warned investors that the price of Ripple’s newly launched stablecoin, RLUSD, may fluctuate in the short term due to supply and demand imbalances. However, he emphasized that this does not mean that RLUSD is a get-rich-quick opportunity.
Schwartz stressed that the primary purpose of a stablecoin is to maintain a stable price, which means that any short-term fluctuations should be corrected by arbitrageurs in the market. This correction process will ultimately stabilize the price at its intrinsic value.
In an effort to temper expectations and prevent potential FOMO (fear of missing out), Schwartz cautioned investors not to expect RLUSD’s price to remain above $1 once the market settles. He emphasized that this is not a chance to get rich quickly and that any high prices during the launch period are likely due to supply and demand imbalances.
As reported earlier, RLUSD has been launched as a decentralized stablecoin pegged to the US dollar (USD), with a mission to revolutionize global financial transactions.
Source: u.today
