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Ripple’s Chief Technology Officer (CTO), David Schwartz, has warned investors not to get caught up in the hype surrounding Ripple’s new stablecoin, RLUSD. In a recent statement, he emphasized that the purpose of a stablecoin is to maintain a stable price, and any short-term fluctuations due to supply or demand imbalances should be expected.
Schwartz stressed that RLUSD is designed to provide a low-volatility asset that can facilitate fast and efficient cross-border payments, stating that the whole point of a stablecoin is a stable price. He advised investors not to fall prey to FOMO (fear of missing out) and urged them to focus on the long-term potential of RLUSD.
In an attempt to curb unrealistic expectations, Schwartz also warned that if someone were to spend a large sum to acquire a small piece of RLUSD before anyone else, they should not expect the price to remain above $1 once the situation stabilizes. He firmly believes this will happen quickly.
It’s essential for investors to understand that stablecoins, by their very nature, are designed to maintain stability and withstand market fluctuations. It’s crucial to avoid getting caught up in short-term price movements and focus on the long-term potential of RLUSD as a reliable cross-border payment solution.
By avoiding FOMO and staying focused on the project’s core purpose, investors can make more informed decisions about their investments.
Source: u.today
