Stablecoins are an integral part of the blockchain ecosystem. While most traders in the cryptocurrency market capitalize on the notoriously-known volatility of the market, others shy away from the market because of it. The use-cases of cryptocurrencies are numerous and critics believe the volatility of the digital assets can pose as a hurdle in a mass-scale adoption. And they won’t be far off, as Bitcoin – or any other altcoin – with its high volatility has little to no chances of becoming a payment mode. This is where stablecoins and stablecoin platforms like Reserve Rights steps in.
What is Reserve Rights Token?
Reserve Rights was founded by Nevin Freeman and Matt Elder in 2019. Both the co-founders have extensive experience with some big names in the industry. Reserve Rights Token is the native token of the Reserve project which is dual-token stablecoin platform. The network has a stablecoin by the name of Reserve (RSV) and another token Reserve Rights (RSR) which is utilized to keep the stablecoin pegged to the value of $1. The stablecoin, Reserve, is backed by a multitude of assets combined into a basket and managed through smart contracts and Reserve Rights Token is utilized through arbitrage opportunities to ensure the stablecoin stays pegged. Reserve Rights Token can also be used for governance purposes by giving holders voting rights.
What sets apart the Reserve Rights platform is the way it ensures the Reserve stablecoin stays pegged to its value. Unlike the traditional stablecoins in the market, the stablecoins are managed automatically through smart contracts which ensures transparency. Moreover, the stablecoin is backed by a basket of stablecoins currently comprising of USDC, TUSD and PAX. The team is planning to add more assets into the basket to ensure higher stability.
Reserve Token future outlook
At the time of writing, the Reserve Rights Token stands at a price level of $0.04. The cryptocurrency has begun moving upwards but the trend has been broken as RSR token has declined by 5% in the daily timeframe. However, the future outlook of the cryptocurrency is bright. Stablecoins are an interesting proposition and are important in the blockchain space as they enable users to benefit from the blockchain technology without its cons.
According to the estimates of Wallet Investor, the cryptocurrency is expected to be trading hands at $0.07 in a year’s time while the five-year projection places it at $0.20. Digital Coin Price expects a similar trajectory. Per their estimates, the cryptocurrency will end the year at $0.05 and reach towards $0.13 by 2026.
