As a researcher with years of experience in the crypto sphere, I find myself intrigued by Ripple’s latest moves with their RLUSD stablecoin. The minting and burning of tokens indicate that they are indeed testing their product rigorously, which is commendable. However, the decision to first release RLUSD on Ethereum rather than XRPL has sparked debate within the XRP community.
Ripple‘s blockchain organization is persistently working on and fine-tuning their Ripple USD (RLUSD) digital currency. In the past few weeks, they have produced large quantities of RLUSD tokens. As per the data from the Ripple Stablecoin Tracker, Ripple has also destroyed some of these newly created stablecoins in clusters. This destruction occurred in four distinct transactions, where each transaction involved either 115 or 120 RLUSD tokens being eliminated.
Ripple Burns 470 RLUSD Stablecoins After Massive Minting Spree
In a recent update, Ripple has executed the burning of 470 RLUSD stablecoins after minting over 1000 RLUSD tokens in the past week. This burn occurred through four distinct transactions, with two burns of 115 tokens and two of 120 tokens each, taking place at the RLUSD Treasury. These activities are part of a continuous testing phase for its new stablecoin project in private beta.
As a crypto investor, I’ve been keeping a close eye on RLUSD developments. After the minting and subsequent burns, there were warnings issued to the community about potential scams surrounding this stablecoin. The company made it clear that the stablecoin is not yet open for public transactions, underscoring the importance of staying vigilant against fraudulent activities in this space.
Starting from August 2024, Ripple has been meticulously conducting tests for its RLUSD stablecoin, which is meant to be linked to the U.S. dollar and secured by cash equivalents. The organization has produced several sets of RLUSD tokens, with the latest being 1.35 million RLUSD units. These tokens were also created in smaller groups, such as the 500 RLUSD units issued on October 6.
Despite actively working on the creation of RLUSD, the XRP team proceeds with caution. They’ve made it clear to the XRP community that this stablecoin is currently undergoing testing and will only become accessible to the public once necessary regulatory approvals are secured and the product has been fully launched.
Dual-Chain Strategy for RLUSD
Furthermore, it was originally intended that RLUSD, the Ripple-backed stablecoin, would simultaneously debut on both the Ethereum and XRP Ledger blockchains. Lately, indications point towards an initial launch of this stablecoin exclusively on the Ethereum platform, which has ignited discussion within the XRP community. This is because a significant portion of the community had anticipated that the primary deployment of RLUSD would occur on the XRP Ledger.
As a crypto investor, I understand that the company’s initial move is to launch their stablecoin on Ethereum, but this is viewed as a short-term strategy. The ultimate goal is to transition the stablecoin to the XRP Ledger (XRPL) by 2024. It’s important to note that when the RLUSD moves to XRPL, it may initially lack some crucial features like the Automated Market Maker (AMM). However, this functionality will be available on the decentralized exchange (DEX) orderbook within the XRPL ecosystem.
Furthermore, as Ripple (XRP‘s company) keeps improving the RLUSD stablecoin, there is ongoing optimism among ex-employees and industry experts regarding its potential positive impact on XRP. In a recent conversation, a former employee of Ripple expressed confidence that RLUSD will increase liquidity for XRP, thereby enhancing its usefulness, particularly in cross-border transactions.
As the usefulness and tradability of XRP increases, its value may rise significantly, particularly since the company intends to broaden the RLUSD stablecoin and incorporate it into their larger system. Currently, XRP is priced at around $0.53, indicating a minor 0.72% drop in the last day. Yet, the daily trading volume has experienced a substantial jump of 24%, surpassing $1.1 billion.
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2024-10-08 15:27