Reserve is a decentralization project that has not so much talked about in the past month but now the hype around Reserve is getting bigger and bigger and indeed.
A whole host of big names have invested in this project. For example, coinbase has invested in Reserve and if coinbase has invested in Reserve, a coinbase listing will be coming at some point in the future.
Reserve is a pretty cool project that at least deserves a closer look.
What is Reserve?
Reserve is a decentralized stable coin with global ambitions. It is a two-tiered token model with the Reserve Token (RSV) which is the stable coin, and with the Reserve Rights Token (RSR), which is the open market token that can fluctuate. The Reserve Rights token is on the backend to provide stability for the Reserve Stable Coin.
The difference is that lateral tokens will be tokenized real-world assets. The portfolio of these assets starts relatively simple and will diversify more and more over time as more and more assets are being tokenized. So, in the end, you have a stable coin that is backed by up to a hundred on-chain and off-chain real-world assets in the long term. This ranges from using other stable coins like the USD Coin (USDC) to including more exotic instruments such as tokenized bonds, tokenized properties, or tokenized commodities.
So the intention of Reserve is to create a global stable currency that is backed by something beyond just the faith in a government. The stable Reserve Token (RSV) is fully backed and all the collateral is kept in the Reserve Vault.
The Reserve Vault is a smart contract that contains a pool of different blockchain assets that are used to collateralize the token.
The Reserve Tokens
So we have two tokens, the stable Reserve Token (RSV) and the Reserve Rights Token (RSR).
Both tokens are ERC20 tokens built on the Ethereum Blockchain.
While the Reserve Token (RSV) is stable at one dollar, the Reserve Rights Token`s price today is $0.0071. RSR has a circulating supply of 6.8 Billion coins and a max supply of 100 Billion coins. RSR price is up 120% in the last 14 days!
This means that if you want to invent in Reserve, you have to invest in the Reserve Rights Token (RSR). If you are buying now, you are investing in the pre-mainnet of Reserve. Even though there is a working app and RSR is listed on some small exchanges, we are still waiting for the official mainnet launch wish can be seen as a kind of price catalyst event.
Here is where the opportunity is: Show up before the crowds are doing it.
Also buying now will get you in before a future coinbase listing that will happen because coinbase has invested in this. The only question is when will that happen?
Hotbit is the current most active market trading it.
The Vision Behind Reserve
Reserve aims to solve the problem of high inflation that has plagued so many countries around the world, ruining the lives and wealth of tens of millions of people globally.
Venezuela, South Sudan, the Democratic Republik of the Congo, Argentina, Lybia, Angola and so many other countries around the world, they have all seen crushing devastating losses due to their weak fiat currency and lacking the tools to escape that failing currency.
Bitcoin doesn`t solve that problem. High transaction fees and the especially the high volatility of Bitcoin make it not well-suitable for such use cases. Reserve is literally aiming to become the reserve currency for all citizens of mismanaged fiat currencies around the world.
If Reserve succeeds with that strategy then Reserve will become one of the world`s most important currencies. I believe that makes the potential of Reserve incredibly big.
The Reserve payment mobile app is currently live in Colombia, Argentina, and Venezuela. In fact, Venezuela is extremely important right now for the team behind Reserve.
The Money Behind Reserve
Meanwhile, Reserve has caught a lot of interest and a lot of hype. The reason for this is the people who are backing Reserve with their money.
As I have already mentioned at the beginning of my post, a whole host of big names have invested in this project. For example, coinbase has invested in Reserve and if coinbase has invested in Reserve, a coinbase listing will be coming at some point in the future. I think that you all know what that means for the price of the Reserve Rights Token (RSR).
Sam Altman who is the president of YCombinator, co-founder and co-chairman at OpenAI, and a prominent angel investor has invested in Reserve. Before that, he has invested in Airbnb, Stripe, Reddit, Asana, Pinterest, Zenefits, Instacart, Optimizely, Change.org, among others.
Another important investor is Peter Thiel who is a co-founder of PayPal, Palantir Technologies, and Founders Fund. He founded and funds the Thiel Foundation, which aims to further breakthrough technologies and improve humanity’s long-term future.
There are many many more investors but just consider the close connections of Peter Thiel and coinbase to PayPal. With the recent Paypal rumor, there has been a lot of speculation floating around recently about a possible connection in the future between Reserve and PayPal.
The Stable Coin Market
Stable coins are extremely popular at the moment which means that there is also a lot of competition for Reserve.
We already have Maker DAO and their DAI stable coin as well as more centralized players like the USD Coin (USDC) or Tether (USDT). We also have to consider other kinds of stable coins like Facebook`s Libra which will be a corporate stable coin.
Therefore, there is still a strong uphill battle for Reserve to fight to gain that dominance.
I hope I could provide you with some interesting and useful information about the Reserve Project. I believe that this is definitely a project to keep an eye on. In my mind, Reserve has incredible upside potential. Rarely do we see so many influential backers in a cryptocurrency project like this.
Reserve is also incredibly ambitious and it has a real potential to be a disruptive force in the fiat currency markets of countries that are suffering from inflation.
Nothing in my post is sponsored, it really reflects my own opinion. Nevertheless, please keep in mind that my intention in this post is not to replace your own research. Always #DYOR. 👌
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