Ripple has alerted the market to potential volatility for its upcoming RLUSD stablecoin, citing unusually high pre-launch bids—including one valuing a fraction of the token at $1,200, far above its $1 peg. Chief Technology Officer David Schwartz attributed this to speculative demand, urging investors to avoid "FOMO behavior" as supply stabilizes post-launch.
Key Developments
Unprecedented Pre-Launch Bids
- A bid of $1,200 for a fraction of RLUSD surfaced ahead of launch, driven by traders vying for symbolic "first purchase" status.
- Schwartz clarified tools display highest bids (even for tiny amounts), which may not reflect equilibrium pricing.
"The price will stabilize close to $1 once supply meets demand. If it doesn’t, something is seriously wrong."
— David Schwartz, Ripple CTO
Regulatory Milestones
- RLUSD secured approval from the New York Department of Financial Services in December 2024.
- Designed for cross-border payments, RLUSD will complement XRP to enhance liquidity and institutional adoption.
FAQ
Why is RLUSD trading above $1 pre-launch?
Early speculative bids artificially inflate prices, but Ripple expects rapid stabilization post-launch.
How will RLUSD be used?
It bridges fiat and digital assets, streamlining cross-border transactions for institutional clients.
Should investors buy RLUSD at inflated prices?
Schwartz advises against it: "This is not an opportunity to get rich."
👉 Explore how stablecoins revolutionize payments
Ripple’s transparency about volatility underscores its commitment to market integrity—a critical step for RLUSD’s long-term credibility.
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