Ripple CTO warns against RLUSD speculation amid market hype
XRP surged 5%
Amid the growing excitement surrounding the launch of Ripple's stablecoin, Ripple USD (RLUSD), XRP surged 5%, and Ripple's CTO, David Schwartz, ironically urged users not to buy RLUSD above its nominal value.
Ripple’s top executives thoroughly prepared the crypto community and U.S. business circles for the RLUSD launch, which was widely covered by leading media outlets. On December 17, XRP rose by nearly 5% to $2.60.
Ripple announced that the RLUSD launch would initially occur on platforms such as Uphold, Bitso, MoonPay, Archax, and CoinMENA. Over the coming weeks, RLUSD will also be listed on other cryptocurrency trading platforms, including Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash.
RLUSD is designed for corporate cross-border payments. It acts as a bridge between fiat currencies and the crypto ecosystem, enabling companies to access liquidity for remittances and treasury operations while integrating with DeFi protocols. RLUSD can also be used to facilitate blockchain-based trading of tokenized real-world assets such as commodities, securities, and U.S. Treasury bonds.
Starting next year, Ripple Payments will use RLUSD for processing global payments for corporate clients.
Each RLUSD token is backed by U.S. dollar deposits, U.S. Treasury bonds, and cash equivalents to ensure its stability, reliability, and liquidity.
Avoiding FOMO around the stablecoin
Ahead of RLUSD's launch, Ripple CTO David Schwartz warned the community about a potential supply shortage in the early days, which could lead to temporary price volatility. He cautioned against falling for speculative offers.
Loading...
“There’s actually someone willing to pay $1,200 per RLUSD for a tiny fraction of one RLUSD... Maybe someone wants the ‘honor’ of buying the first piece of RLUSD on a DEX. Tools will show you the highest price… If you want to spend a lot of money to get a tiny fraction of RLUSD before someone else, you can do that. But please don’t expect the price to stay above $1 once things stabilize, which I expect to happen very quickly,” Schwartz wrote on his X page.
Schwartz urged users "not to fall for FOMO in the stablecoin" and emphasized that the primary goal of RLUSD is to maintain price stability, discouraging irrational speculative behavior.
Ripple (XRP) has broken out of its approximate horizontal trend channel in the medium to long term, signaling renewed bullish momentum.
