Ripple's highly anticipated RLUSD stablecoin has officially gained final approval from the New York Department of Financial Services (NYDFS). 

The announcement, shared by Ripple CEO Brad Garlinghouse on December 10, has sparked excitement within the cryptocurrency community, but Ripple’s Chief Technology Officer, David Schwartz, has cautioned investors against "fear of missing out" (FOMO) behavior.‍

Market Reactions and Schwartz's Warning

The RLUSD stablecoin, pegged to the US dollar, is designed to maintain price stability. However, Schwartz took to Twitter to address potential supply shortages during the early days of the stablecoin’s launch. He noted, “There may be supply shortages in the very early days before the market stabilizes. Rest assured, the price will come back to very close to $1 as soon as supply stabilizes. If it doesn’t, something is very seriously wrong.”

Schwartz warned against speculation, stating, “Please don't FOMO into a stablecoin! This is not an opportunity to get rich. The whole point of a stablecoin is to have a stable price.”

His comments came after reports of an individual willing to pay $1,200 for a fraction of one RLUSD on the decentralized exchange, which Schwartz described as an anomaly caused by temporary market inefficiencies.‍

XRP Sees Price Activity

In the broader Ripple ecosystem, XRP, the cryptocurrency tied to Ripple, saw significant price movements following the RLUSD announcement. On December 11, XRP surged 11% in 24 hours after initially stumbling as investors offloaded altcoins earlier in the week. As of now, XRP is trading at $2.40, a decline of 1.51% over the past seven days, according to CoinMarketCap.

The RLUSD stablecoin launch is expected to increase activity within Ripple’s network, with exchange and partner listings set to follow. Garlinghouse emphasized that official updates about RLUSD will come directly from Ripple’s communication channels.