Ripple's chief technology officer David Schwartz says investors shouldn't expect gains on stablecoins as his company prepares to launch its new dollar-pegged crypto asset soft
In a new post on social media platform X, Schwartz says that Ripple USD (RLUSD) may face a supply shortage in the early days of its debut given the pre-market demand for the stablecoin.
“Of course there is someone who is willing to pay $1,200/RLUSD for a small fraction of one RLUSD… maybe someone wants the 'honor' of buying the first part of RLUSD on the DEX (decentralized exchange).
Schwartz says the price of RLUSD should rebound to near $1 when the supply stabilizes.
“If you want to spend a lot of money to get a small piece of RLUSD before anyone else does, you can. But don't expect the price to stay above $1 once things stabilize, and I expect they will very soon.”
The co-creator of XRP says that the whole point of a stable is to have a stable price so that investors should not see these tokens as a way to get profits.
“Short-term changes in prices due to a lack of supply or demand are certainly possible, especially around launches, but they should not last long as arbitrators set the market to quick Please don't put FOMO into your stable! This is not an opportunity to get rich.”
Ripple is expected to launch RLUSD on Tuesday after receiving final approval from the New York Department of Financial Services (NYDFS) last week.
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Source: https://dailyhodl.com/2024/12/17/ripple-stablecoin-rlusd-may-experience-supply-shortages-on-debut-says-xrp-co-creator-david-schwartz/