Ripple’s RLUSD Stablecoin Could Cost You More at Launch – Here’s Why

Ripple’s much-anticipated stablecoin, RLUSD, is set to launch soon, and the excitement is building in the crypto community. With the release date approaching, expectations are especially high within the XRP community. While many are eager to buy RLUSD, Ripple’s CTO, David Schwartz, has shared some important advice for potential buyers.

A Price Spike at Launch?

One key point Schwartz made is that RLUSD may experience temporary price increases when it first launches. This could happen because there might be a shortage of supply early on. Some buyers might be willing to pay more than the stablecoin’s intended $1 value just to be among the first to own it. For example, early trading saw RLUSD priced at 511 XRP, or $1,231—much higher than the $1 target.

Schwartz explained that these price spikes are temporary and don’t reflect the stablecoin’s long-term value. New assets, especially stablecoins, can experience supply-demand imbalances when they launch, leading to price fluctuations. These spikes are normal but shouldn’t be seen as an opportunity to profit. Once the market stabilizes, the price will return to $1.

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Don’t Buy Out of FOMO!

Ripple’s CTO strongly advises against buying RLUSD out of fear of missing out (FOMO). He emphasized that the stablecoin’s main goal is to stay at a consistent $1 value. Any price movement above $1 is likely due to supply issues or short-term demand. Schwartz warned that buyers who spend a lot of money to get a small amount of RLUSD early on should not expect to make a profit.

Schwartz also noted that profit-taking traders—those who take advantage of price differences in different markets—will help correct any price discrepancies. This process will bring RLUSD back to its intended $1 price point as the market stabilizes.

Get ready for RLUSD’s launch discover how it could impact XRP’s price! Read our XRP price prediction to stay ahead of the curve.

A Promising Future for Stablecoins

Despite the early price fluctuations, Schwartz believes in the long-term potential of the stablecoin market. Ripple sees RLUSD as a credible player in the space, and with stablecoins becoming increasingly popular, Schwartz predicts the market could surpass $2 trillion by 2028.

In short, while the launch of RLUSD might bring some short-term price fluctuations, the stablecoin’s purpose is to maintain stability. Buyers should be patient and avoid buying in a rush, as the price will stabilize once the supply and demand balance out.

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