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Ripple’s Chief Technology Officer (CTO), David Schwartz, has warned investors about the potential price of Ripple’s new stablecoin, RLUSD. In a recent statement, he emphasized that RLUSD is not a get-rich-quick scheme and should not be viewed as an opportunity to make a quick profit.
Schwartz explained that the purpose of a stablecoin is to maintain a stable price, which means it will not fluctuate excessively in value. He warned that if someone were to spend a large amount of money to acquire a small piece of RLUSD before anyone else, they should not expect the price to remain above $1 once the market stabilizes.
Schwartz’s statement is meant to curb any potential FOMO (fear of missing out) and remind investors that stablecoins are designed for stability, not speculation. He emphasized that short-term price changes due to a lack of supply or demand may be possible during the launch period, but they should not last long as arbitrageurs will quickly correct the market situation.
In other words, Schwartz is cautioning investors against trying to make a quick profit by buying RLUSD at an inflated price. He believes that any short-term distortions in the market will be rectified rapidly, and the stablecoin’s value will stabilize around its pegged value of $1.
It is essential for investors to remember that RLUSD is designed to maintain a stable value and not to provide a quick return on investment.
Source: u.today
