The post Ripple CTO Details How RLUSD Might Trade At $1,200 On Debut appeared on BitcoinEthereumNews.com.

Ripple CTO David “JoelKatz” Schwartz has outlined how RLUSD—the upcoming stablecoin on the XRP Ledger—could initially trade at highly inflated prices, possibly even $1,200, despite its intended $1 peg. Speaking via X, he highlighted early supply bottlenecks, speculative fervor, and the fundamental market mechanics of stablecoins as factors likely to drive any short-lived spike. Why The Ripple Stablecoin RLUSD Could Hit $1,200 In a reply to community chatter around a screenshot that showed an RLUSD value of $1,200 on the Xaman wallet, Schwartz confirmed such a price is theoretically possible. He remarked that “as RLUSD goes live, there may be supply shortages in the very early days before the market stabilizes. There actually is someone willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD. Tools will show you the highest price anyone is willing to pay, even if it’s just for a tiny bit. Maybe someone wants the ‘honor’ of buying the first bit of RLUSD on the DEX.” However, he was quick to stress that “the price will come back to very close to $1 as soon as supply stabilizes,” suggesting that any eye-popping listing would be more of a novelty event than a real market assessment of RLUSD’s long-term value. “But rest assured, the price will come back to very close to $1 as soon as supply stabilizes. […] If you want to spend a lot of money to get a tiny bit of RLUSD before anyone else does, you can. But please don’t expect the price to stay over $1 once things stabilize, which I expect they will do very quickly.” Part of the reason for these anomalies, according to the Ripple CTO, lies in the basic minting and burning mechanics that underpin stablecoins. Minting the Ripple stablecoin involves creating new units when demand rises,…

---

Filed under: News - @ December 16, 2024 7:20 am