Ripple introduced RLUSD, a native stablecoin built on the XRP Ledger (XRPL) network. This launch generated positive sentiment within the XRP community, even leading to a brief surge in XRP’s price above $2.70. However, the initial rollout of RLUSD was not without its challenges.
Unusual Pre-Launch Pricing Raises Questions
Prior to its official launch, some cryptocurrency wallets displayed anomalous pricing for RLUSD. In certain instances, the stablecoin’s value reached an inexplicable $1,200, significantly deviating from its intended $1 peg.
These discrepancies were brought to light by XRP enthusiasts on social media platforms like X (formerly Twitter). For example, one user shared a screenshot from the Xaman wallet showing 1 RLUSD priced at 511.20 XRP, which equated to roughly $1,200 at that time.
In Xaman t’s showing the price to be a $1,200 RLUSD conversion to XRP. Is this the instant over night price adjustment the XRP community has been waiting for… Will the price of XRP adjust to the value OF 1 RLUSD or is this a glitch until it goes “LIVE”? https://t.co/kzYZ18fVGD
— Digital Assets Daily (@AssetsDaily) December 11, 2024
Furthermore, a prominent community figure acknowledged the unusual pricing and questioned if it would persist until the official launch, potentially driving XRP’s value even higher. This speculation reflects a broader sentiment within a segment of the XRP community that the RLUSD stablecoin could act as a catalyst for XRP price growth.
Ripple Clarifies Early Price Fluctuations
David Schwartz, Ripple’s Chief Technology Officer, intervened to clarify the factors influencing the initial RLUSD price volatility. Through a tweet, he explained that limited supply coupled with high demand were the primary forces behind the surge.
Schwartz elaborated that, due to the initial scarcity of RLUSD, a user was willing to pay $1,200 for a single unit, prompting the system to adjust the price based on the highest buy order. He assured the community that this volatility would subside as the RLUSD supply increased over time.
Learning from Launch Day Mishaps
An unfortunate incident involving a trader attempting to swap XRP for RLUSD served as a cautionary tale during the launch phase. As reported by The Crypto Basic, a user’s pre-launch order was fulfilled upon RLUSD’s market debut, resulting in the exchange of 10,000 XRP for 100 RLUSD.
Given the prevailing exchange rate at the time (XRP trading around $2.71), this transaction meant the trader essentially paid $271 for each RLUSD unit. However, upon launch, RLUSD assumed its intended $1 valuation, effectively converting the user’s $27,100 into just $100.
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
RLUSD Finds its Footing
Since its launch, RLUSD’s price has stabilized around the $1 mark. CoinMarketCap data indicates that the stablecoin is currently trading at $1.01, with a total supply of approximately $53.1 million.
The launch of RLUSD represents a significant step for the XRP ecosystem, offering a native stablecoin option for XRPL users. While initial hiccups caused some confusion, Ripple’s swift explanation and RLUSD’s subsequent price stabilization suggest a promising future for this innovative financial instrument.
Also Read: Ripple’s RLUSD: The Stablecoin Set to Disrupt DeFi, Forex, and Institutional Banking
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