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David Schwartz Warns Not To FOMO Ahead of RLUSD Launch
Ripple’s Chief Technology Officer (CTO), David Schwartz, has issued a warning to potential investors ahead of the launch of Ripple’s USD-denominated stablecoin, RLUSD. In a tweet, Schwartz cautioned against falling prey to Fear of Missing Out (FOMO) as RLUSD becomes available for trading.
Schwartz highlighted an unusual situation where some traders are willing to pay up to $1,200 per RLUSD for minimal amounts, likely driven by a desire to be early adopters. However, the Ripple executive stressed that this price premium would be temporary and urged investors not to rush into the market without proper consideration.
“It’s not worth paying an inflated price to be the first in line,” Schwartz warned. “Please don’t FOMO into a stablecoin!”
Schwartz explained that while short-term price fluctuations might occur during the launch phase, they should not persist as market mechanisms stabilize the price. He emphasized that it is crucial for investors to prioritize caution and patience, allowing the market to settle before making any investment decisions.
RLUSD’s stability is backed by U.S. dollar deposits, U.S. government bonds, and cash equivalents, designed to maintain a stable value and ensure liquidity. Additionally, Ripple has committed to transparency through monthly third-party attestations of reserve assets conducted by an independent auditing firm.
Schwartz’ warning comes amid concerns over the potential for RLUSD to disrupt the global financial landscape. The launch represents a significant expansion of Ripple’s financial infrastructure, combining traditional finance compliance with blockchain technology.
Ripple President Monica Long emphasized the company’s commitment to regulatory compliance and market stability in a recent press release. “Combining our 10+ yrs in the business; the rigor & compliance required with stablecoin issuance by a @NYDFS chartered company,” she said, highlighting the importance of Ripple’s decades-long experience in the financial industry.
The RLUSD advisory board will be joined by Raghuram Rajan, former Governor of the Reserve Bank of India, to provide guidance on regulatory issues, finance, and operations.
Source: cryptotale.org
