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Ripple CTO Warns Against Early FOMO as RLUSD Stablecoin Nears Launch
David Schwartz, Chief Technology Officer at Ripple, has issued a warning to the cryptocurrency community regarding the impending launch of Ripple’s US dollar-pegged stablecoin, RLUSD. In a recent post on X, Schwartz cautioned users against falling prey to fear-of-missing-out (FOMO) in the early days following the launch.
RLUSD is set to enter the market soon, and investors are eager to get their hands on it after Ripple CEO Brad Garlinghouse announced that the stablecoin has received final approval from the New York Department of Financial Services. However, Schwartz emphasized the need for caution, citing potential supply shortages in the early stages before the market stabilizes.
Schwartz highlighted a concerning situation where one user was willing to pay an astonishing $1,200 per RLUSD for a tiny fraction of the token. He clarified that this inflated value is likely a result of pre-launch activity rather than a reflection of the token’s true worth. The Ripple CTO emphasized that the RLUSD price will eventually stabilize around $1 as supply normalizes.
It’s crucial to note that Schwartz explicitly warned users against FOMO, stating that “if it doesn’t [stabilize], something is very seriously wrong.” He further clarified that the primary purpose of a stablecoin is not to generate substantial profits, but rather to provide a stable price.
Source: www.cryptonewsz.com
