Cryptocurrencies have the potential to massively upgrade the effectiveness of money world wide. Reserve can be sent nearly instantly to anyone anywhere in the world, can’t be diluted or devalued by irresponsible governments, and can be programmed to operate inside of financial contracts that rely on code instead of law—each of which is independently a major improvement over fiat money. Cryptocurrencies have recently been top-of-mind for consumer, investors, and regulators around the world. Why, then, have they not been adopted?
Reserve addition to technical impediments that are on track to being solved, cryptocurrencies like bitcoin and ether have been highly volatile in market valuation. Their volatility discourages merchants and consumers from using them as a medium of exchange or store of value. Put simply, nobody wants to spend a currency that may be worth twice as much in a month, and nobody wants to store their retirement savings in a currency that may be worth nothing in a year.
Their volatility also prevents them from serving as a standard of deferred payment. Anyone who negotiates rent, wages, or loans in a currency lacking a stable value is unavoidably also speculating on that currency’s future purchasing power. Relying on a volatile currency for such needs introduces unnecessary risk and makes it more difficult to coordinate effectively .
Reserve Key Information
|Tokens for sale||4,000,000,000|
|Price in ICO||0.0011 USD|
|Distributed in ICO||40%|
|Hard cap||3,000,000 USD|
|Whitepaper||Click Here For View Whitepaper|
|Website||Click Here For Visit ICO Homepage|
The Game Change Team Behind Reserve
The Opportunity for Stable Cryptocurrencies
Unleashing a fully functional cryptocurrency will be similar to releasing smartphones for the first time. Holding an iPhone, you could tell that mobile browsing was going to be a lot better, but no one predicted that within a few years there would be massive networks of non-professional drivers roving around picking up strangers and taking them wherever they wanted to go.
Uber just wasn’t what you thought of when someone said “app” Similarly with cryptocurrency, while several applications of the technology are clear, it’s equally clear that as many or more applications will be a surprise. Reserve Money is the most basic platform for commerce, and cryptocurrency is poised to be the most functional and least restricted form of money we’ve ever invented.
Growing the Crypto asset Ecosystem
To start, Reserve can already see the massive uptake of asset-backed stable cryptocurrencies
as a means of exchange in the world of cryptoasset trading. Tether is the largest stable
cryptocurrency at the time of this writing, with between $1 and $2 billion in market cap . Tether’s daily trading volume is often about 100% of its market cap, so even excluding on-chain transactions, it has an annual velocity of 300-400.
More notably, Tether has achieved this level of success despite an enormous amount of distrust—while many market participants are happy to include Tether in their short-term trading plans, very few are willing to hold onto it for significant periods of time. This gives many the false impression that stable-coins are a smaller piece of the puzzle than they are.
Supporting Emerging Markets
Reserve if fiat currencies lost their value as quickly as the cryptocurrencies of 2018, dropping in value 20-99% per year? Unfortunately, this is exactly what happens to the fiat currencies of many emerging markets. While many of us live out our days safely insulated from the consequences of this reality, many others are not so lucky. Imagine being forced to hold a currency that loses 50% of its value every year, and having little to no alternative.
Despite the level of globalization today, it remains difficult to transact across borders. A widely-used stable cryptocurrency would remove these barriers and allow anyone to transact with anyone else, anytime, anywhere. Reserve would also allow businesses to scale internationally without having to build new infrastructure to interface with local banking institutions in each region.
Reserve tokens other assets that are held in smart contracts in order to back the value of the Reserve token, similar to when the US government used to back the US dollar with gold. The protocol is designed to hold collateral tokens worth at least 100% of the value of all Reserve tokens. Many of the collateral tokens will be tokenized real-world assets such as tokenized commodities, currencies, and securities. The portfolio will start off relatively simple and diversify over time as more asset classes are tokenized.
How the Reserve Token is Stabilized
Suppose the redemption price of Reserve is $1.00. If the price of Reserve on the open market is $0.98, arbitrageurs will be incentivized to buy it up and redeem it with the Reserve smart contract for $1.00 worth of collateral tokens. They’ll continue buying on open markets until there is no more money to be made, which is when the market price matches the redemption price of $1.00. The same mechanism works in reverse when demand goes up.
If the price of Reserve on the open market is $1.02, arbitrageurs will be incentivized to purchase newly minted Reserve tokens for $1.00 worth of either collateral or Reserve Rights tokens (the latter only if there is an excess pool of Reserve tokens available), and immediately sell them on the open market. They’ll continue selling on open markets until there is no more money to be made, which is when the market price matches the purchase price of $1.00.