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Stablecoin RLUSD Hits $1,200 at Launch,Temporary Surge or Red Flag?

Stablecoin RLUSD Hits $1,200 at Launch,Temporary Surge or Red Flag

With RLUSD now only being in preparation to be launched, the curiosity about market opening and especially its first steps is growing. New records confirm that the prices of RLUSD in decentralized exchanges increased to inexplicable extremes where one potential buyer has offered $1, 200 to buy one RLUSD. Even though this appears as a reactive shift or perhaps today’s market signal, insiders advise against hasty conclusions. 

Early Market Imbalances Likely Temporary

The price which is displayed on the DEX of $1,200 for RLUSD could be because of scarcity of the initial issue. As is the case with any new stablecoin such as RLUSD, at first, there are even shortages in supply as the market manages to balance. Those who obtain RLUSD at the onset, perhaps to establish dominance over other early buyers in acquiring what might become a scarce asset, may offer to pay inflated prices for a share. But these initial trades are hardly representative of the asset’s intrinsic value, which is the purpose of creating a stablecoin – its value is anchored to $1.

Such situations are normal in the course of the first few months after the start of the usage of a stablecoin. The prices offered in different trading platforms for the same security mostly represent individual infrequent sales rather than the market price. In this case, the $1,200 price could be attributed to just one bidding party hoping to gain the right for the first trade.

Stabilization Expected Quickly, Avoid FOMO

Independent market specialists believe that the price of RLUSD will converge back to near its intended value of $ 1 after initial launchings. Stablecoins are pegged to stable assets and therefore should not have large price swings – any volatility that exists for a short period as a result of supply and demand discrepancies is usually re-adjusted by arbitrageurs. 

Conversely, if the price of RLUSD stays above $1 for more than a short period, then there must be an inherent problem with the stablecoin’s architecture. Analysts are warning, arguing that stablecoins are designed not as such instruments but as reserve assets. 

Customers should be careful not to be trapped into FOMO and should not pay an extremely high price for the RLUSD during its initial stages in the market. Stablecoins are positioned as reliable asset instruments that cannot guarantee high returns, which means that they will not be suitable for speculation .

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