Ripple’s new stable coin RLUSD had reached $1,200 before launch with Ripple’s CTO explaining the reasoning behind this price per coin.
In a surprising turn of events, Ripple’s stablecoin, RLUSD, reached an astonishing value of $1,200 per coin prior to its official launch.
This unprecedented pricing was clarified by Ripple’s Chief Technology Officer, David Schwartz, who provided insights into the underlying factors contributing to this spike.
Launch of RLUSD: A New Era for the XRPL Network
Ripple’s RLUSD made its debut on December 17, marking the introduction of a native stablecoin on the XRPL (XRP Ledger) network.
The launch generated a wave of enthusiasm within the XRP ecosystem, briefly pushing XRP’s price above $2.70, igniting bullish sentiment among investors.
Abnormal Pricing Discovered by the Community
Prior to its launch, some wallets displayed unusual pricing for RLUSD, leading to discussions among XRP enthusiasts.
A notable instance was shared on X (formerly Twitter) by a user who posted a screenshot showing RLUSD priced at 511.20 XRP, equating to $1,200 at that moment.
This anomaly raised eyebrows, as stablecoins are typically expected to maintain a value close to $1.
Speculation Surrounding RLUSD’s Impact on XRP
Community members speculated about the sustainability of this pricing until the official launch, with some suggesting that RLUSD could drive XRP’s price even higher.
This speculation reflects a broader belief within the XRP community that the introduction of RLUSD would positively affect XRP’s market value.
David Schwartz Explains the Price Surge
In response to the unusual pricing, David Schwartz took to Twitter to explain the economic principles at play.
He indicated that the initial price spikes were a result of limited supply coupled with increasing demand.
Schwartz noted that the current valuation—where someone was willing to pay $1,200 for a single RLUSD—was a response to supply constraints, which would eventually normalize as availability increased.
A Cautionary Tale: A Trader’s Costly Mistake
In a separate incident, a trader faced a significant loss when swapping XRP for RLUSD.
The Crypto Basic reported that this individual exchanged 10,000 XRP for 100 RLUSD, believing he was making a sound investment.
However, once RLUSD launched at its intended $1 valuation, the trader’s initial investment of $27,100 plummeted to a mere $100, illustrating the risks associated with trading in volatile markets.
Current Status of RLUSD
As it stands, RLUSD has stabilized around its intended $1 valuation.
According to CoinMarketCap, the stablecoin is currently trading at approximately $0.9995 , with a total supply of $53.1 million.
This stabilization reflects the balancing act between supply and demand that Schwartz highlighted, suggesting a more predictable future for RLUSD as it gains traction in the cryptocurrency market.
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Also Read: RLUSD Is A Massive Game Changer According To SWIFT Veteran
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