David Schwartz, chief technology officer at San Francisco-based blockchain firm Ripple, has cautioned the XRP community that there might be supply shortages of the new RLUSD stablecoin. 

This comes after Xamax, a popular XRP wallet, started showing XRP being priced at a whopping $1,200. 

Schwartz has confirmed that someone is indeed willing to shell out such an exorbitant amount of money for a tiny fraction of a single token. He has explained that somebody probably wants the honor of purchasing the first bit of RLUSD. 

Schwartz has assured the community that the price of stablecoin will stabilize shortly after its launch. "If it doesn't, something is very seriously wrong," he said. 

The Ripple exec has also cautioned against FOMOing into the much-hyped stablecoin, warning that this is not an opportunity to get rich. According to Schwartz, the price of the stablecoin will stabilize very quickly following its launch. "Short-term changes in prices due to shortages of supply or demand are certainly possible, especially around launch, but they shouldn't remain for very long as arbitragers rapidly fix the market," he explained. 

As reported by U.Today, the stablecoin was recently greenlit by the New York State Department of Financial Services (NYDFS). However, the stablecoin is yet to appear on the NYDFS website among greenlisted coins. 

It is believed that the stablecoin is going to be officially launched in the near future after getting a significant regulatory boost. 

Ripple's new stablecoin product was initially announced by the company back in April.