David Schwartz, a well-known figure among cryptocurrency investors, warned the market that those who want to get rich should not buy the company’s new stablecoin. Ripplethe RLUSD.
To the stable coins They are recognized because their market value is linked to a particular asset. For example, USDT has a 1 to 1 parity with the US dollar, i.e. 1 USDT is the same as US$1.00.
But part of the market seems to have misunderstood Ripple’s new launch Stablecoin prices exceed a thousand dollars. Seeing the case, the company’s president spoke out asking investors to be cautious.
Ripple CTO says no one will get rich with new stablecoin
Some market speculators paid $1,200 for a unit of RLUSD, David Schwartz said. Negotiations are still taking place on decentralized exchanges and there is no listing of this stablecoin on centralized exchanges.
He attributed the possible price increase to a collector, who might want the first part of the coin. Still, he expects the price to stabilize around $1 in the coming days, which is his benchmark.
“With RLUSD going live, there may be supply shortages in the first few days before the market stabilizes. There is even someone willing to pay $1,200/RLUSD for a small fraction of an RLUSD. The tools show the highest price someone is willing to pay, even if it is only a small amount. Maybe someone wants the ‘honor’ of buying the first piece of RLUSD on the DEX.
But rest assured, the price will return to very close to $1 once supply stabilizes. If that doesn’t happen, something is very seriously wrong.”
After this, David stated that he understands the feelings of people who collect coins, but they should not expect a return on their investment. For example, he called for FOMO with the stablecoin to reduce among investors.
“If you want to spend a lot of money to get a little bit of RLUSD first, you can. But please don’t expect the price to rise above $1 when things stabilize, which I expect will happen very soon.
The purpose of a stablecoin is to have a stable price. Short-term price changes due to supply or demand shortages are certainly possible, especially around launch, but they are unlikely to last long if arbitrageurs quickly sort out the market.
Please don’t create FOMO on a stablecoin! This is not an opportunity to get rich.”
With RLUSD going live, there may be supply shortages in the early days before the market stabilizes. There is actually someone willing to pay $1,200/RLUSD for a small portion of one RLUSD. Tools show you the highest price someone is willing to pay, even if it’s just for a… https://t.co/LOx4rGiiiJ
— David “JoelKatz” Schwartz (@JoelKatz) December 15, 2024
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
