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Attention is mounting around Ripple’s new RLUSD stablecoin, with bidding on on-chain marketplaces reaching as high as 836 XRP, equivalent to approximately $2,068, in anticipation of its launch scheduled for Tuesday. This eagerness indicates a competitive environment among crypto enthusiasts keen to be among the initial holders of the token.
Bids have been observed ranging from 500 XRP, or around $1,237, to the higher sum of 836 XRP as of Tuesday morning in Asia, as seen on the Xaman application. Current market data shows each XRP token trading just below $2.50, data indicates.
David Schwartz, the Chief Technology Officer of Ripple Labs, highlighted this phenomenon in a post on Monday, revealing that “there is actually someone willing to pay $1,200/RLUSD for a tiny fraction of one RLUSD.” He noted that these high bids reflect a desire among some traders to secure the prestige of acquiring the first RLUSD on the decentralized exchange (DEX).
Schwartz assured investors that the price is expected to stabilize around the $1 mark once initial supply and demand equilibrate. He warned, “If it doesn’t, something is very seriously wrong,” emphasizing the importance of liquidity for maintaining the stablecoin’s peg to the dollar.
This pattern of speculative buying is not uncommon, as early adopters often make high-value transactions for fractional amounts of new tokens or NFTs in hopes of capitalizing on their novelty and potential future value.
Despite the current frenzy, there may be short-term challenges regarding liquidity for RLUSD once it is officially launched. This could lead to temporary price deviations from the anticipated $1 peg. Nonetheless, each token is ultimately pegged to the dollar, suggesting that any disconnect from this value should be short-lived as the market stabilizes.
The debut of RLUSD on the XRP Ledger (XRP) is set for Tuesday, as reported by CoinDesk, with initial trading available on various exchanges and crypto platforms, such as Uphold, MoonPay, Archax, and CoinMENA.
Source
finance.yahoo.com