Ripple, a leading player in the crypto market, has recently minted nearly 50 million Ripple USD (RLUSD) stablecoins over the past week. Following this significant minting, the Ripple Stablecoin Tracker on the X platform reported that Ripple has burned several batches of RLUSD stablecoins. This activity coincided with Ripple’s warning about scammers targeting crypto users, attempting to exploit the project’s beta status.
Details of RLUSD Burns
The Ripple team conducted four consecutive burns of RLUSD at the RLUSD Treasury. This included two batches of 115 stablecoins and two batches of 120 RLUSD each. Before these burns, Ripple issued an impressive 47 million RLUSD in just a few days.
Related article: Ripple Burns 185 RLUSD Tokens as Stablecoin Testing Advances
The minting involved several batches, including 10 million RLUSD at a time and smaller batches of approximately 6 million each. Since August, Ripple has been testing RLUSD, a stablecoin pegged to the US dollar and backed by cash.
The company reminds the XRP community that RLUSD is still in a private beta phase, despite ongoing on-chain activities. Ripple warns users to be cautious of scams as the new stablecoin is not yet available for purchase or transactions.
Community Reactions
The XRP community expressed surprise when Ripple announced that RLUSD would initially launch only on the Ethereum blockchain, contrary to earlier statements about its availability on both the XRPL and Ethereum. Although Ripple plans to launch RLUSD on the XRP Ledger in 2024, it will lack certain functionalities. Specifically, the Automated Market Maker (AMM) feature will not be available on XRPL, restricting its use to the decentralized exchange (DEX) order book.
Related article: Ripple’s RLUSD Stablecoin Set to Enhance XRP Use Cases in DeFi
In the midst of these developments, Gabor Gurbacs, a strategic advisor at Tether, emphasized that Tether’s USDT remains the dominant stablecoin. He praised Tether’s principles, liquidity, and global approach in April when Ripple announced the RLUSD launch. Gurbacs asserted that the Tether team effectively meets market demands with its robust infrastructure and support for real use cases.
Ripple’s minting and burning of RLUSD highlight its ongoing efforts to establish a stablecoin while navigating the challenges of a rapidly changing crypto landscape.
