Reserve Rights, the utility token of Reserve protocol has made some impressive gains in the last 24 hours. At the time of press, the Reserve Rights Token (RSR) is up by 47% and is the biggest gainer of the day. It seems the price rally was triggered by PayPal’s cryptocurrency buy sell support announcement. Interestingly, PayPal’s co-founder Peter Thiel is invested in Reserve Rights.
When Altcoin Buzz took a closer look at the current investor list of the Reserve Rights project, we came across two more PayPal associates on the list. Following Thiel, Jack Selby, the member of the PayPal founding team, and Eric Jackson, VP of marketing at PayPal are also invested in the project.
Will RSR make it to PayPal’s other virtual currency list?
According to the October 21 announcement by PayPal, the platform plans to add support for Bitcoin followed by Ethereum, Litecoin, and BitcoinCash. As the PayPal leadership is already invested in Reserve, we might see the RSR token listed on the platform soon.
Interestingly, Coinbase the leading crypto exchange is also invested in Reserve. On 17 October 2020, Coinbase Custody announced that it is exploring RSR and plans to add it to the asset support list. However, Coinbase did mention that its investment in Reserve will not influence the listing process. According to Coinbase, RSR will undergo a standard review process before the final listing.
What makes Reserve so special?
Reserve protocol is a stablecoin platform on Ethereum. It comes with a dual token model – RSR and RSV. While RSR is a utility token, RSV is a stablecoin that can be used like just another stable fiat currency. RSV is backed by different assets collateral.
Both RSV and RSR work together to protect Reserve protocol users against the volatility of the collateral tokens. Basically, RSR is used to facilitate the stability of the Reserve token.
To understand it better, let us assume the marketcap of collateral tokens that back RSV is not sufficient. This means the market cap is not in 1:1 fashion with RSV. In this situation, the Reserve protocol will mint more RSR. Using this RSR more collateral will be purchased on secondary markets.
On the other hand, if the collateral tokens exist in excess, these will be used to buy back RSR. Subsequently, the protocol will burn these RSR.
Effectively, Reserve aims to provide inflation protection to the economically troubled.
Almost 2 hours prior to the PayPal Crypto support announcement, RSR price started showing an upward movement. In the last 24 hours, the price has continued to soar and at the time of press, the RSR token is trading close to $0.0148. However, it is still 51.6% down from its all-time high of $0.031.
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