Ripple’s Chief Technology Officer Discusses Upcoming Stablecoin Launch and Market Expectations
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Ripple’s Chief Technology Officer (CTO), David Schwartz, has recently shared his thoughts on the upcoming launch of the company’s new stablecoin, RLUSD. In a recent interview, he emphasized that the purpose of a stablecoin is to maintain a stable price, which means it should not be expected to soar in value or remain above $1 in the long run.
According to Schwartz, the short-term fluctuations in the market are a normal phenomenon and should not be confused with the true nature of the stablecoin. He urged investors not to get caught up in the hype and to instead focus on the bigger picture.
In his statement, he warned that RLUSD may cost more than $1 at launch due to various factors such as supply and demand imbalance, but this does not mean it will remain above that price. The CTO stressed that arbitrageurs would quickly correct any market imbalances, which should help stabilize the coin’s value in the long run.
As a result, Ripple’s CTO is cautioning investors against making impulsive decisions based on short-term market fluctuations and instead advises them to prioritize stability over potential profits.
Source: u.today
