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Vijay Gir
Vijay Gir
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- Dec 17, 2024 04:29 UTC
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Why Are Traders Bidding $2,000 When RLUSD Price Is $1?
Despite being pegged at $1, RLUSD is seeing exorbitant bids on Xaman, with some users offering thousands of dollars for early access.
This early bidding frenzy is attributed to hype and speculation, as collectors seek to be among the first to own the new stablecoin.
Ripple CTO warns against FOMO, emphasizing that RLUSD is a stablecoin and not an investment opportunity for quick riches.
Ripple’s RLUSD stablecoin is set to launch this Tuesday, and excitement is spreading fast across the crypto world. With listings on platforms like Uphold, MoonPay, Archax, and CoinMENA, the hype is real. But there’s a surprising twist—some buyers are paying thousands for RLUSD, even though its price is pegged at just $1.
People Are Already Paying Premiums—Here’s Why
On-chain marketplaces like Xaman are buzzing with activity as collectors and traders rush to get their hands on RLUSD early. Some bids have gone as high as 836 XRP—around $2,068—just for a small fraction of the stablecoin. Considering RLUSD’s $1 price tag, these numbers are shocking.
David Schwartz Explains the Hype
Ripple’s CTO, David Schwartz, weighed in on the unusual bidding frenzy. In a post on Sunday, he shared an example of someone offering $1,200 for just a tiny fraction of RLUSD.
“There actually is someone willing to pay $1,200 for a tiny fraction of RLUSD,” Schwartz said.
According to him, some buyers simply value being among the first to hold RLUSD, even if it doesn’t make much financial sense.
Ripple Warns of Early Price Volatility
Ripple expects some price swings when RLUSD launches, mostly due to limited early supply. This kind of volatility is normal during a token launch. Schwartz reassured the community, explaining that RLUSD’s price will stabilize as liquidity increases.
So, why the chaos? It’s a mix of hype and speculation. The crypto market has seen this before—whether with new tokens or NFT drops, some people are willing to pay a premium to “own a piece of history.”
Schwartz, however, had a clear message for those getting caught up in the frenzy:
“Please don’t FOMO into a stablecoin! This is not an opportunity to get rich.”
What to Expect on Launch Day
Despite the temporary madness, Ripple has solid systems to ensure RLUSD stays pegged to $1. A reliable redemption mechanism allows the stablecoin to always be redeemed for its target price. If major price swings happen, arbitragers—traders who profit from price gaps—will step in to bring things back to normal.
With Tuesday’s launch approaching, all eyes are on RLUSD. While some bumps are expected in the beginning, Ripple is confident the price will settle quickly.
If you’re watching from the sidelines, remember: patience pays off. Stablecoins aren’t designed for quick profits, so avoid the hype and focus on the bigger picture.
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FAQs
RLUSD is a stablecoin launched by Ripple, pegged to $1, offering stability in the crypto market and backing from Ripple’s mechanisms.
Early supply shortages and speculation drive initial volatility, but the stablecoin’s peg and redemption mechanisms ensure long-term stability.
Yes 
No 
