Ripple's RLUSD Stablecoin Reached a Value of $1,200 Per Coin Before Launch, CTO David Schwartz Explains the Reason Behind the Pricing

Ripple’s RLUSD launched on December 17, birthing a native stablecoin on the XRPL network. The launch sparked positive sentiments around the XRP

After much anticipation, Ripple's (XRP) native stablecoin, RLUSD, finally went live on December 17. The launch sparked positive sentiments around the XRP ecosystem and contributed to a short-lived bullish push above $2.70.

However, before the stablecoin's official launch, an unusual pricing was observed on some wallets, with 1 RLUSD valued as high as $1,200. This引起了 XRP 爱好者的注意，他们想知道这种定价是否会持续到发布。

Some XRP enthusiasts disclosed the abnormal pricing on X (formerly Twitter). For instance, a user shared a screenshot of the RLUSD’s pricing against XRP on the Xaman wallet, with 1 RLUSD valued at 511.20 XRP ($1,200 at the time).

Furthermore, a community figure confirmed the pricing, inquiring if it would stay that way until the launch, potentially pushing XRP to the lofty price. Notably, his comments align with a faction of the XRP community speculating that the RLUSD stablecoin will push XRP’s price higher.

However, Ripple's Chief Technology Officer David Schwartz explained the factor driving the RLUSD price spike using simple economics. He tweeted that the XRPL-based stablecoin will see price spikes in its early days due to limited supply and growing demand.

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

Schwartz suggested that a user was willing to pay $1,200 for 1 RLUSD due to the supply shortage, causing the system to revalue RLUSD to the highest buy order. However, he noted that this will stabilize over time as supply grows.

In a separate event, a trader lost $27,000 while swapping his XRP for the stablecoin. The Crypto Basic reported that a user swapped his 10,000 XRP for 100 RLUSD after his pre-launch order was filled upon the stablecoin’s market debut.

The swap valuation meant that the trader bought 1 RLUSD for $271, as XRP was trading at around $2.71 at the time. RLUSD claimed the $1 valuation upon launch, turning the user's $27,100 into a mere $100.

Meanwhile, RLUSD's price has stabilized around the $1 valuation. Per CoinMarketCap, the stablecoin trades at $1.01, with a total supply of $53.1 million.