Ripple CTO Anticipates Volatility for RLUSD Post-Launch

Following the launch of the RippleUSD (RLUSD) stablecoin, significant volatility is expected, and it is crucial to avoid FOMO. This was stated by the CTO of the issuer, David Schwartz.

As RLUSD goes live, there may be supply shortages in the very early days before the market stabilizes. There actually is someone willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD. Tools will show you the highest price anyone is willing to pay, even if it’s just for a… https://t.co/LOx4rGiiiJ

— David “JoelKatz” Schwartz (@JoelKatz) December 15, 2024

Schwartz did not rule out a token shortage amid “large orders,” but he expects the price to eventually return to parity with the US dollar.

The executive commented on reports of a user named Xaman willing to spend 511 XRP (~$1244) for “the honor of buying the first bit of RLUSD on DEX.”

WOW! ?

XAMAN SHOWS 1 RLUSD = 511 #XRP ? pic.twitter.com/1dBodfNnFp

— ?????? (@_Crypto_Barbie) December 11, 2024

“The price will not remain above $1 once the situation stabilizes, which […] will happen very quickly [due to the actions of arbitrage traders]. […] Please do not FOMO on stablecoins. This is not a get-rich opportunity,” he urged.

Axelar co-founder Georgios Vlachos, in a conversation with Cointelegraph, predicted increased demand for XRP following the launch of RLUSD in 2025, as transactions and money transfers will occur in the XRP Ledger (XRPL) and the XRP-EVM sidechain.

“XRP holders will benefit because you burn a small amount of tokens each time you make a transaction,” he explained.

On December 3, amid heightened whale activity, the XRP rate reached a multi-year high of $2.909.

At the time of writing, the price stands at $2.4, with a market capitalization of $137.39 billion.

On December 10, the New York Department of Financial Services approved RLUSD for trading.

The list of platforms includes Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Liquidity will be provided by market makers B2C2 and Keyrock.

Back in April, Ripple announced the start of testing for the RLUSD stablecoin. According to the company’s CEO, Brad Garlinghouse, this asset, suitable for payments, RWA, and DeFi, will become the “gold standard for the corporate sector.”

With the approval of the stablecoin, Ripple will not abandon XRP. According to previous statements, both coins will be used for international payments.