Ripple Chief Technology Officer David Schwartz says investors shouldn’t hope for profits on stablecoins as his company prepares to launch its new dollar-pegged crypto assets.
In a new post on social media platform X, Schwartz say Ripple USD (RLUSD) may face supply shortages in the early days of its debut, given pre-market demand for the stablecoin.
“Someone is actually willing to pay $1,200/RLUSD for a small portion of one RLUSD…Maybe someone would like to have the ‘honor’ of buying the first piece of RLUSD on the DEX.”
Schwartz says the price of RLUSD should return close to $1 as supply stabilizes.
“If you want to spend a lot of money to get a little bit of RLUSD before anyone else does, you can. But please don’t expect the price to stay above $1 once things stabilize, which I expect they will do very soon.”
The co-creator of XRP says the whole point of stablecoins is to have a stable price, so investors shouldn’t look at these tokens as a way to make a profit.
“Short-term price changes due to a supply or demand shortage are certainly possible, especially around launch, but they should not last long as arbitragers will quickly fix the market. Please don’t fomo in a stablecoin! This is not an opportunity to get rich.”
Ripple will launch RLUSD on Tuesday after receiving final approval from the New York Department of Financial Services (NYDFS) last week.
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