RLUSD Price Hits $1,200? Stock will be limited at launch!

Bittime - RLUSD price reaches $1,200 (around IDR 19.2 million)? Ripple CTO warns about RLUSD price volatility at initial launch. Limited stock, beware of speculation!

Ripple's latest stablecoin launch, RLUSD, carried out immediately after obtaining permission from New York Department of Financial Services (NYDFS). This announcement immediately sparked great excitement among the crypto community. 

However, there was a surprising phenomenon related to the price of RLUSD which was observed to have soared $1,200 in some decentralized exchange (DEX).

RLUSD Price is a Concern

This very high price certainly attracts attention. Mainly, because RLUSD is a stablecoin that is supposed to have a stable value, usually pegged to a fiat currency such as the US dollar. 

David Schwartz, Chief Technology Officer (CTO) from Ripple, immediately issued a strong warning to investors regarding the price spike that occurred at the start of the launch. 

Schwartz explained that the RLUSD price which reached this fantastic figure was an anomaly caused by limited supply dynamics in the initial launch phase.

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What Happened to RLUSD Price?

RLUSD's price of $1,200 is not a reflection of the true value of this stablecoin. David Schwartz said that the very high price reflects this highest offer exists, although only for very small amounts of RLUSD. 

This happened due to high demand from users who wanted to be the first to own this stablecoin on DEX. This is a phenomenon that often occurs at the launch of new products that are much anticipated.

Schwartz emphasized that the price of RLUSD will soon return to more stable figures once the supply of this stablecoin increases and it becomes more traded. 

“If prices don't come back closer to $1, that would indicate a major problem in the system,” Schwartz said. 

He also warned the community not to get caught up in it FOMO (Fear Of Missing Out) which can lead them to buy RLUSD at a much higher price than it should be worth.

Advantages and Risks of RLUSD

RLUSD is designed as a stablecoin, which means its value should remain stable, along with frequent crypto market fluctuations. However, in the initial phase of launch, price volatility can occur as a result of an imbalance between demand and supply. 

This is normal in any new cryptocurrency launch. Ultimately, the RLUSD price is expected to return to its pegged value, which is approx $1 USD, as explained by Schwartz.

However, there are several things that investors and users need to pay attention to. Although the price of RLUSD has the potential to be stable in the long term, the initial launch phase will likely be filled with price fluctuations influenced by speculation and market passion. 

For this reason, it is very important for users to be careful and not get caught up in short-term price speculation, which has the potential to be detrimental.

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RLUSD Stock Limited

In the near future, RLUSD will soon be launched on the market, and in the meantime stock RLUSD can be very limited in the early stages. For those who want to be a part of this launch, This moment could be a golden opportunity. 

However, as mentioned by Schwartz, investors should be careful about unstable prices and avoid speculative trading.

Thanks to the technology behind Hedera Hashgraph, this stablecoin has the potential to bring various benefits to the Ripple ecosystem and increase the adoption of the XRP token. 

However, as with any new product in the crypto world, the market reaction to the launch of RLUSD can be very unpredictable. There needs to be a cautious approach from Ripple and its users to ensure long-term stability.

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Conclusion

The launch of RLUSD by Ripple is indeed a moment that many parties have been waiting for, but investors need it to be alert against prices that can be very volatile in the initial phase. With limited supply and high enthusiasm, it is very possible for price spikes to occur that do not reflect the true value of the stablecoin.

As time goes by and the supply of RLUSD stabilizes, this price is expected to return to the desired value, which is approx $1 USD. For investors, it is recommended not to rush to buy at high prices just because of FOMO, but to monitor market movements wisely.

FAQs About RLUSD

What is RLUSD?

RLUSD is a stablecoin issued by Ripple, which aims to provide a stable digital asset for transactions and trading. It is fully backed by US dollar deposits, short-term US government treasuries, and other cash equivalents, ensuring its value remains consistent with the US dollar.

Will RLUSD Replace XRP?

Additionally, RLUSD will not replace XRP, as some believe. RLUSD acts like digital cash, while XRP is used to help facilitate transactions around the world.

What is Ripple's RLUSD?

Ripple CEO Brad Garlinghouse announced on Tuesday that the RLUSD stablecoin, a crypto asset designed to maintain a stable value in line with the US dollar, has been approved by the New York Department of Financial Services.

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Reference 

Time Tabloid, Someone Willing to Pay $1,200/RLUSD: Ripple CTO Issues Critical Warning As RLUSD Goes Live, accessed December 16, 2024.

Wall Street Pit, $1,200 for RLUSD? Ripple CTO Issues Stark Warning to Investors, accessed December 16, 2024.

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