Ripple CTO Warns Investors Don't Need FOMO On RLUSD

Ripple has just tested the RLUSD stablecoin. (Photo; Doc. BitDegree)

JAKARTA - blockchain-based cross-border payment company and XRP coin developer, Ripple Labs, is preparing to launch a new stablecoin called RLUSD. The stablecoin has received the green light from the Department of New York Financial Services (NYDFS) and is designed to support international transactions.

Ripple's Chief Technology Officer (CTO), David Schwartz, recently warned investors not to rush to hunt down RLUSD coins and not to be afraid to miss the trend (FOMO).

This was conveyed by Schwartz via posting on platform X on Sunday, December 15. He considered that the launch of RLUSD could trigger large volatility in the near future. Schwartz also mentioned that large pre-launch demand has triggered artificial inflation of the token value.

For example, in Ripple's official wallet, Xaman showed an offer worth 511 XRP (approximately USD 1.244 or IDR 19.9 million) for one RLUSD coin, well above its stable value designed for USD 1 per coin.

"But don't worry, the price will come back close to 1 US dollar once the supply stabilizes. Otherwise, that means there is a serious problem. Don't FOMO for this stablecoin! This is not an opportunity to get rich," Schwartz said in his post.

For information only, RLUSD stablecoins have been tested on the XRP Ledger and Ethereum networks. Ripple president Monica Long stated that RLUSD was designed to complete XRP by increasing liquidity while maintaining stablecoin price stability.

Meanwhile, Ripple CEO, Brad Garlinghouse, added that RLUSD will target major institutions involved in cross-border transactions. This stablecoin is expected to increase global payment efficiency by integrating XRP and RLUSD into one ecosystem.