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Reserve Rights mainnet launch timing and details: Is RSR token price jump sustainable?

By Darius McQuaid

Edited by Charlie Mellor


Updated

US dollars as a background
RSR is available to buy on Binance and KuCoin – Photo: Getty Images

Despite the Reserve protocol going live on 10 October as was predicted, the reserve rights (RSR) crypto dropped.

According to CoinMarketCap, RSR was trading down by 6% at $0.00687 earlier today (11 October). 

The ERC-20 and native token of the Reserve protocol, RSR enjoyed a rise in value over the last week of September in anticipation of the upcoming mainnet/protcol launch.

The RSR token had been enjoying a rise of between 33% (on 23 September) and 29% (on 26 September), however, as of 27 September, it had slumped at one point by 5.86% and was trading at $0.007497. Nonetheless, RSR started October with a rise of 0.50% in value to $0.009687, according to CoinMarketCap.

RSR to USD

The two functions of the RSR crypto

The crypto has two main purposes for the Reserve protocol – “insuring Reserve stablecoins (RTokens) through staking and governing them through proposing and voting on changes to their configuration”.

In addition, the Reserve protocol has been described as a pool of stablecoins that are designed to reduce risk through diversification and decentralised governance.

XRP/USD

0.60 Price
-0.250% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.13 Price
-2.950% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,487.05 Price
-0.990% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

66,787.45 Price
-0.930% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

With five audits either finished or nearing completion, the mainnet launch of RSR took place in October at the Reserve protocol launch event in Bogotá, Colombia, on 10 October.

The mainnet launch, as the official Reserve protocol website described it, was “the launch of the full Reserve protocol on the Ethereum mainnet”.

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How does RSR maintain Reserve protocol’s stablecoin?

Unlike the stablecoin tether (USDT), the Reserve network’s stablecoin, reserve (RSV), is not backed by reserves but relies on RSR to “perform an arbitrage loop” that helps maintain the price of RSV to around $1.

This is what is referred to as an algorithmic stablecoin, which has gained a lot of negative attention since May 2022 when terraUSD (UST), another algorithmic stablecoin, lost its peg to the US dollar.        

Founded by several tech investors, including CEO Nevin Freeman, RSR is available to buy on Binance (BNB), the world’s largest cryptocurrency exchange by trading volume, and KuCoin (KCS), the self-proclaimed people’s crypto exchange.

Markets in this article

BNB/USD
Binance Coin / USD
597.74 USD
-4.53 -0.760%

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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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