news 
XRP News: Ripple CTO Warns of Early RLUSD Supply Shortages and Price Volatility
Ripple’s Chief Technology Officer (CTO), David Schwartz, has issued a warning to investors about the upcoming launch of RLUSD, stating that there may be early supply shortages and temporary price fluctuations. According to Schwartz, these fluctuations are expected to be short-term in nature and will ultimately correct themselves as the market adjusts.
RLUSD is a new stablecoin pegged to the US dollar, designed to maintain a stable value. This means its value should remain fixed at $1 per unit. Schwartz emphasized that investors should not fall prey to “FOMO” (Fear of Missing Out) or get caught up in short-term price fluctuations, as these are only temporary and will soon dissipate.
As RLUSD is set to launch on multiple blockchains, including the XRP Ledger and Ethereum, investors may see a surge in prices during its early days. Schwartz pointed out that some individuals may be willing to pay unusually high prices for a fraction of RLUSD, potentially reaching $1,200 or more per unit. However, he reassured the community that this price spike is merely a temporary phenomenon that will soon correct itself.
Schwartz went on to clarify that the core purpose of a stablecoin like RLUSD is to maintain a stable value, and short-term fluctuations will be addressed by arbitrage traders who capitalize on these discrepancies in the market.
Source: coinpedia.org
