Crypto: Ripple's Stablecoin Could Stir Up A Storm Upon Its Arrival

As Christmas approaches and the year 2024 comes to a close, the crypto ecosystem continues to make headlines with new ambitious projects. While Bitcoin hovers around $110,000, Ripple is preparing to launch its stablecoin RLUSD, an initiative that promises to shake up the market. But behind the enthusiasm, warnings about initial volatility are multiplying, notably from David Schwartz, Ripple’s CTO.

RLUSD: between scarcity and volatility, Ripple on alert

The arrival of the revolutionary stablecoin RLUSD, pegged to the dollar, is already causing a wave of panic among traders, despite the warnings from David Schwartz. As soon as it launches, the market could face temporary shortages, fueling unexpected volatility for an asset that is supposed to be stable. Schwartz did not mince his words in a tweet:

” Do not give in to FOMO for a stablecoin! This is not an opportunity to get rich. “

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… https://t.co/LOx4rGiiiJ

— David "JoelKatz" Schwartz (@JoelKatz) December 15, 2024

Some investors, however, seem ready to do anything to buy the first RLUSD. An auction at $1,200 for one unit has even been spotted on Xaman, a platform linked to Ripple. This bidding reflects more a symbolic desire than a real evaluation of its value.

Schwartz remains confident: once the supply stabilizes, the RLUSD should find its anchor at $1. If that’s not the case, ” something would be very seriously flawed,” he says.

• Some key figures:
  • 1 RLUSD offered at $1,200 before launch;
  • A pairing planned with XRP to stabilize the price;
  • Launch approved by New York regulators.

This RLUSD-XRP duo is set to be strategic: it will strengthen the liquidity of the stablecoin while increasing the attractiveness of Ripple’s flagship altcoin.

Crypto XRP: an ecosystem strengthened by RLUSD

Ripple is aiming high with RLUSD, a project designed to complement and enrich the use of XRP. This stablecoin is not just a monetary tool; it aims to attract major institutions into the crypto sphere. During its official announcement, Monica Long, President of Ripple, highlighted the ” complementary and additive “ aspect of this new product.

RLUSD will play a key role in Ripple’s cross-border payments, leveraging XRP’s potential for liquidity. This partnership between the altcoin and the stablecoin is designed to reduce the risks of de-pegging, a frequent problem with stablecoins.

According to Brad Garlinghouse, CEO of Ripple, the future looks promising: RLUSD could become a benchmark for international transactions, relying on the massive reserves of XRP available in the markets.

Traders, however, will need to exercise caution: despite Ripple’s ambitions, the initial days of launch may shake prices, as illustrated by the recent example of Xaman. While this volatility may frighten novices, seasoned investors may see an opportunity to seize, provided they keep a cool head.

Moreover, the prospect of XRP reaching $100 in 2025 already fuels analysts’ hopes. The expected end of the litigation between Ripple and the SEC, coupled with a possible return of Donald Trump to power, could offer Ripple a new strategic breath.