Ripple Keeps Burning RLUSD After Minting 42 Million Stablecoins

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As a seasoned analyst with over two decades of experience in the digital assets space, I’ve witnessed the evolution of various projects and their strategies. The recent developments surrounding Ripple’s stablecoin, RLUSD, have caught my attention, and here’s what I make of it.

Based on information from the Ripple Stablecoin Tracker on the X-platform, it’s been reported that Ripple, a cryptocurrency valued at $10 billion, has destroyed multiple batches of its stablecoin, Ripple USD (RLUSD), after producing close to 50 million of them over the past week.

The large-scale appearance of these mints occurred concurrently with Ripple’s advisory, cautioning crypto enthusiasts about scammers attempting fraudulent activities within the ongoing beta project they are associated with.

Ripple burns 470 million after minting millions of RLUSD

According to multiple tweets from the given data source, Ripple carried out four successive RLUSD burns at the RLUSD Treasury. This resulted in the destruction of two groups containing 115 stablecoins and two clusters consisting of 120 RLUSD each.

🔥🔥🔥 120 #RLUSD burned at RLUSD Treasury.

— Ripple Stablecoin Tracker (@RL_Tracker) October 7, 2024

Before taking action, the giant in the blockchain sector produced approximately 47 million units of RLUSD over a few days. This was done by creating groups of 10 million RLUSD and some smaller batches with around 6 million RLUSD each.

Since the start of August, the well-known blockchain company responsible for introducing the XRP token in 2012, to facilitate cross-border transactions and remittances through collaborations with banks and financial institutions, has been conducting trials on a new product – a stablecoin linked to the US dollar and secured by cash and its equivalent assets.

As an analyst, I’d like to share some insights about the ongoing development of the Ripple project. While there’s visible on-chain activity, it’s crucial to remember that we are currently in a private beta phase. This means that the groundbreaking Ripple initiative is still undergoing internal testing and refinement.

Main RLUSD launch to happen on Ethereum

Previously, as per U.Today’s report, the XRP community was taken aback when Ripple revealed that instead of launching the stablecoin on both the XRPL and Ethereum networks as initially announced, it will only be released on the Ethereum network this year.

Instead, the anticipated new stablecoin could potentially debut on the XRP Ledger by 2024, but it may not include a significant feature – the Automated Market Maker (AMM). On the XRP Ledger, this functionality would operate differently, functioning within the DEX orderbook rather than automatically.

Despite recent developments, such as Ripple’s announcement of RLUSD in April, Gabor Gurbacs, currently a strategic advisor at Tether, maintains that Tether’s USDT is still leading the stablecoin market. In response to Ripple’s announcement, Gurbacs expressed his confidence in Tether on Twitter, stating: “The Tether team possesses the right principles and a proven track record. They offer high liquidity, are geographically focused appropriately, have a well-designed product, and have a global team to support real-world use cases that the market demands.

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2024-10-08 11:18