- October 1, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
In a revelation on the upcoming Ripple USD (RLUSD) stablecoin, insights emerged from a conversation with a former Ripple employee who was intricately involved in developing Ripple’s On-Demand Liquidity (ODL) product. Tony Edward, the host of the popular Thinking Crypto Podcast, shared exclusive details via X after speaking with the former employee at the Mainnet conference.
How XRP Will Benefit From RLUSD
The insider’s view on RLUSD suggests a positive synergy with XRP, contrary to fears of potential negative impacts. “The stablecoin will actually be beneficial for XRP, as it will be paired with it,” the former employee was paraphrased by Edward.
The former ODL developer added that he has “advocated for Ripple to launch a stablecoin years ago” because the pairing with XRP will provide RLUSD with greater liquidity and help stabilize the stablecoin, thus preventing depegging incidents. “XRP will help provide the stablecoin with greater liquidity since it is available on all exchanges. Additionally, this pairing will help stabilize the stablecoin and prevent depegging,” Edward paraphrased.
Furthermore, the introduction of RLUSD is poised to unlock new use cases, particularly in the forex markets, expanding Ripple’s reach and utility. “They also stated that the stablecoin will open up new use cases in forex and much more,” Edward wrote.
Despite the growing excitement within the crypto community regarding the RLUSD launch, Ripple has recently issued a clarification, urging caution and confirming that RLUSD is still in its private beta phase. “Ripple USD (RLUSD) is still in private beta, and while you may see on-chain activity, it’s not available yet. Beware of anyone claiming to distribute RLUSD. Keep an eye out for the latest updates, and stay vigilant against scams!” Ripple stated on X.
Notably, the integration of RLUSD within the XRP Ledger (XRPL) is encountering technical hurdles, particularly with the ledger’s current inability to support tokens with a ‘clawback’ feature in its Automated Market Maker (AMM). “RLUSD is a stablecoin with clawback settings enabled. Tokens with this setting are denied by the XRP Ledger to be used in the AMM. There are amendments in the works to help solve this,” explained Vet (@Vet_X0), a recognized XRPL dUNL validator and co-founder of xrp.cafe.
Growing Frustration With Ripple
Amidst these technical challenges, there is a growing sentiment of frustration among the XRP community, particularly voiced by Jungle Inc Crypto News (@jungleincxrp). Concerns are mounting over Ripple’s preparedness for the launch and the perceived shift in focus to Ethereum, which might host RLUSD initially.
“Ripple’s RLUSD stablecoin will lack key capabilities on the XRPL—if it even launches there at all. Reports suggest it could start on Ethereum. […] The clear focus on Ethereum should be telling. XRP will likely perform well this bull run, but it’s clear it’s no longer a top 3 chain like it used to be. Ripple’s influence on XRPL is no longer as significant as many believed. XRP is a good asset, but not a great one. The goal should be to sell it all during the upcoming bull run. Most price targets should be moved down. This isn’t an asset to hold cycle after cycle.” Jungle Inc expressed.
At press time, XRP traded at $0.62.
