Ripple Stablecoin RLUSD May Experience Supply Shortage Upon Debut, XRP Co-Creator David Schwartz Says

On By Littum

Ripple chief technology officer David Schwartz says investors shouldn’t hope for gains on stablecoins as his company prepares to launch its new dollar-pegged crypto asset.

In a new post on the social media platform X, Schwartz writes says Ripple USD (RLUSD) may experience supply shortages in the early days of its debut due to pre-market demand for the stablecoin.

“There is actually someone willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD…Maybe someone will have the ‘honour’ of buying the first bit of RLUSD on the DEX (decentralized exchange).”

Schwartz says the price of RLUSD should go back close to $1 as supply stabilizes.

“If you want to spend a lot of money to get a little bit of RLUSD before someone else does, you can. But please don’t expect the price to go above $1 when things stabilize, which I expect they will very quickly.”

The XRP co-creator says the whole point of stablecoins is to have a stable price, so investors shouldn’t see these tokens as a way to make a profit.

“Short-term changes in prices due to lack of supply or demand are certainly possible, especially around launch, but they should not remain for very long as arbitrageurs quickly fix the market. Please do not FOMO into a stablecoin! This is not an option to get rich.”

Ripple is set to launch RLUSD on Tuesday after receiving final approval from the New York Department of Financial Services (NYDFS) last week.

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