Ripple CTO: RLUSD is expected to be in short supply at the beginning of its issuance

On December 16, Ripple CTO David Schwartz said that Ripple's dollar-pegged stablecoin may be "short in supply" in the early stages of its launch, but he warned investors not to "FOMO." He expects RippleUSD (RLUSD) to see large fluctuations immediately after launch, and although the token is designed to maintain a 1:1 peg with the US dollar, there are still several large orders.

He pointed out that before the launch, some small initial pre-listing bids for the currently unissued RLUSD artificially inflated its value. A post on X shows that 1 RLUSD is worth about 511 XRP (worth $1,244 at current prices) and is located in a Ripple wallet called Xaman. "Someone is willing to pay $1,200/RLUSD for a small portion of RLUSD," Schwartz said, saying that the bid looks like someone wants the "honor" of buying the first RLUSD to enter the market.

He added: "But rest assured, once supply stabilizes, the price will return to very close to $1. If not, then something is very wrong. Please don't buy stablecoins because of FOMO, this is not an opportunity to get rich." (Cointelegraph)