Reserve.org: Stablecoin Cryptocurrency Project Gets Coinbase & Peter Theil Support
Reserve, currently in its developing phase, is a project that focuses on the concept of stablecoin, that is to reduce volatility in prices. According to Cointelegraph’s recent reporting, the new project has gained several backings including GSR.IO, venture capitalist Peter Thiel, Coinbase, and over 40 others.
Reserve’s aim of stabilizing cryptocurrencies has been successful thus far, as it raised a combined $5 million, which will help towards the entirety of the decentralized crypto. As per existing data, the functionality of this effort revolves around “locking up other cryptoassets in a smart contract in order to provide backing to the Reserve token and stabilize its price.”
Co-Founder, Nevin Freeman originally wanted to avoid mass exposure by sticking to a simple seed round that will value strong partnerships. When asked by Cointelegraph how Reserve is unique from other stablecoins, Freeman mentioned that its use of cryptoassets is what makes them superior compared to other coins that focus solely on pegging the value. He views this as problematic, as “loss in confidence in that particular stablecoin can spiral out of control.”
It appears that Reserve will be able to contribute economically on a global scale, especially in countries faced with currency-regression and high inflation rates. Ultimately, Freeman believes that consumers no longer need to worry about fluctuations within their savings, nor wonder whether their current holding will be worth the same, much more or much less in the future.
Here is as per Freeman’s quotes:
“Put simply: nobody wants spend a token that may be worth twice as much next month to buy a carton of milk and nobody wants to store their savings in a token that may be worth nothing in a year.”
As for the progress made in Reserve, it seems that the project has a great deal of expert advisors, as the majority of them have previously held positions at established institutions like SEC, CFTC, Federal Reserve, OCC, and Treasury Department.