Peter Thiel, Coinbase and 40 others invest in stablecoin project called Reserve
There is a new project which aimed at creation of stabilized cryptocurrency. The objective is to create an entity that functions like normal money. The interesting aspect is that the project has already raised five million USD in its beginning. The project is named as ‘Reserve’.
This project is trying to create this crypto by entangling other crypto assets in a smart contract in the process to provide backing to the Reserve toke. This will stabilize the prices of the coin.
The Reserve’s co-founder named Nevin Freeman said that the decision of keeping the seed funding small was intentional. The focus of the seed funding was not amassing huge capital although that will come later. The company was looking for partnership building processes and networking ambitions.
And boy did they succeeded in their efforts. Some of the biggest name in the crypto community and Silicon Valley have invested in their project. Since the last report, it has the backing of heavy hitters like Peter Thiel, Coinbase, GSR.IO and Distributed Global.
Aside from these backers, they have the involvement of almost forty other partners. All for the purpose of creating a cryptocurrency that will finally act like normal money.
Nevin Freeman and Project ‘Reserve’
Freeman was very clear that their project is very different from the other games in crypto town. He said in his interview to the Cointelegraph, “The key piece of the Reserve approach is to use crypto assets from outside of our own ecosystem to maintain a peg, especially at the start. The problem with supporting a peg via crypto assets that are all within a stablecoin’s smart contracts is that loss in confidence in that particular stablecoin can spiral out of control. We’ve worked hard to make that as unlikely as we can.”
Freeman further commented, “Put simply: nobody wants to 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”.
Fixing the ‘Crypto Volatility’
The problem with the cryptocurrencies right now is their volatility. They have the potential to insulate the citizens from the disastrous governmental policies but decentralization also creates volatility.
This is the problem with the current crypto market that the Reserve project is trying to fix. The implication for their successes can be huge. They can improve the life of countless individuals in developing countries whose currencies are mired with disastrous governmental policies.
They are clearly in the process of making valuable allies. Their networking efforts seems to be imitating the creation of supporting web of relationships that Ann Marie Slaughter describes in utility of networks. They have created an advisory relationship with former SEC head. They are hitting every necessary buttons right.
Disclaimer: Koinalert’s content is only for information purpose in nature and should not be considered as investment advice. Do your own market research before investing in any cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.