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Ripple’s Chief Technology Officer (CTO), David Schwartz, has recently warned that the newly launched RLUSD stablecoin may cost more than one dollar due to its unique design and scarcity. In a recent statement, Schwartz emphasized that it is essential to understand that stablecoins are designed to maintain a stable value, not necessarily at a low price.
As such, he cautioned against expecting RLUSD to remain above $1 in the long term. Instead, he highlighted the potential for short-term fluctuations based on supply and demand imbalances during the launch period.
Schwartz warned that attempting to buy into the early stages of RLUSD may not yield significant profits as the market would quickly correct itself through arbitrage. He emphasized that this is not an opportunity to get rich in the classical sense, and investors should be prepared for the stablecoin’s value to stabilize around its intended price.
It remains to be seen how the market will react to RLUSD, but Ripple’s CTO has made it clear that any significant price movements are unlikely to persist. As such, investors would be wise to approach this new asset with a long-term perspective rather than trying to profit from short-term fluctuations.
Source: U.Today
Source: u.today
