RLUSD Launch Is 'Not An Opportunity To Get Rich,' Ripple Executive Cautions

Ripple Labs CTO David Schwartz has issued a warning to investors about potential price volatility as Ripple's RLUSD stablecoin goes live.

What Happened: "As RLUSD goes live, there may be supply shortages in the very early days before the market stabilizes," Schwartz said on Sunday on X.

He pointed out that while someone might pay significantly above $1 for a fraction of an RLUSD during the launch phase, such prices are unsustainable.

"Rest assured, the price will come back to very close to $1 as soon as supply stabilizes. If it doesn't, something is very seriously wrong."

Schwartz also advised against speculative buying during the launch, stating, "Please don't FOMO into a stablecoin! This is not an opportunity to get rich."

He said that the primary purpose of a stablecoin is price stability and that arbitrage mechanisms will quickly correct any short-term price distortions caused by early supply and demand imbalances.

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Why It Matters: Ripple Lab secured regulatory approval for RLUSD from the New York Department of Financial Services (NYDFS) last week, marking a notable achievement for the company.

The stablecoin, pegged to the US dollar, is designed to enhance Ripple's ecosystem and leverage the growing demand for stablecoins, which analysts predict could reach a $2 trillion market cap by 2028.

Ripple CEO Brad Garlinghouse announced the NYDFS approval earlier this week, confirming that RLUSD listings on exchanges and partner platforms are imminent.

"When RLUSD is live, you'll hear it from Ripple first," Garlinghouse stated.

The stablecoin has already undergone rigorous testing on both the XRP Ledger and Ethereum (CRYPTO: ETH) blockchain, ensuring its readiness for launch within the regulatory framework of New York's financial ecosystem.

Ripple’s native token (CRYPTO: XRP) is 122% over the last 30 days.

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