Ripple's RLUSD Stablecoin Launches, Sparking Frenzy Among Crypto Community

The cryptocurrency community was in a frenzy Tuesday night after Ripple's stablecoin RLUSD launched in select exchanges worldwide – over 700,000 posts were about "1la RLUSD" as crypto holders raced to explain why the stablecoin traded at $1.50 at one point earlier in the day on MoonPay.

Cryptocurrency community members expressed frustration Tuesday night after noticing XRP coin holders were selling their altcoins to obtain Ripple's stablecoin RLUSD, despite it being designed to maintain a price in line with that of the U.S. dollar.

Following the stablecoin's launch on select exchanges worldwide, many crypto users took to X to express their frustration over the XRP holders, with some blaming the stablecoin for halting the XRP token's surge.

What Happened?

RLUSD, which launched Tuesday to a very excited crypto market, was trading at $1.50 at one point earlier in the day on MoonPay. Some Ripple fans, on the other hand, made bids on the stablecoin ahead of the launch, with some investors willing to pay up to 511 XRP tokens (over $1,000) to acquire the first few issued RLUSD coins.

Some crypto users expressed frustration over what appeared to be a misunderstanding among crypto newbies who were swapping their XRP coins to obtain RLUSD.

Analyst Zach Rector blamed people “trading XRP to RLUSD” for the apparent halt in the XRP token's surge. XRP, the native crypto of the XRP Ledger, surged upon RLUSD's launch, but has since slightly retreated.

Some crypto users felt bad for new entrants into the crypto space, saying it appears they were “uninformed” about how stablecoins work.

Best Stablecoin?

There have been comparisons over RLUSD to the existing leaders in the stablecoin segment, Tether's USDT and Circle's USDC.

For some industry analysts and observers, the Ripple stablecoin may be a better choice for people who want to utilize the payments power of stablecoins. The key reason is the RLUSD's stamp of approval from the New York State Department of Financial Services (NYDFS).

Under the regulator's watchful eyes, Ripple is required to undergo real-time audits to verify its dollar reserves. In the case of USDT, Tether has been plagued by questions on transparency, specifically on its reserves, due to a lack of consistent reporting.

It remains to be seen how RLUSD will perform in the coming days and if it can, in the future, challenge USDT's dominance in the stablecoin market.