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Reserve rights price prediction: What is RSR?

By Peter Henn

Edited by Charlie Mellor

12:33, 23 September 2022

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Representation of an RSR token in front of a black background
Reserve rights (RSR) helps back the RSV stablecoin – Photo: Shutterstock

Reserve is a stablecoin that doesn’t actually operate with a traditional reserve, but what is reserve rights (RSR)?

Let’s see what we can find out about RSR, and examine some of the reserve rights price predictions that were being made as of 23 September 2022, too. 

Reserve rights explained

One of the key concepts in the world of cryptocurrency is that of the stablecoin. A stablecoin, ultimately, represents a compromise between the worlds of fiat currency and crypto. The idea is that, because the price of crypto can go up and down quite a bit in a relatively short space of time, there are a lot of potential investors who might end up being put off.

On the other hand, crypto enthusiasts like to tout how crypto, unlike fiat, offers holders greater privacy and security, as well as taking matters out of the hands of centralised banks and institutions. So, stablecoins offer, at least in theory, the best of both worlds, as they are cryptocurrencies that are designed to stay pegged to a fiat, usually the US dollar.

The Reserve crypto network is, at the end of the day, based around the reserve (RSV) stablecoin. What is notable about RSV is that, unlike such stablecoins as tether (USDT), it is not backed by reserves. Instead, it relies on another crypto based on the platform, called reserve rights (RSR).

If the price of RSR gets too far above the dollar, then RSV is burned. If it drops too far below it, then, according to the whitepaper “the Reserve Manager will sell reserve tokens from that pool for $1 worth of reserve rights tokens each, allowing Rights holders to perform an arbitrage loop that brings the price back down to $1.” However, it is important to note that it will only do this if there is an excess of reserve rights in the network’s liquidity pool. If there isn’t, then RSV tokens are sold. 

RSR also helps create the collateral that RSV needs to back it. If the value of the collateral is too low, then new RSR coins get added to the circulation and are sold and exchanged for the other cryptos that go into the collateral. One of the reasons the system uses other cryptos, which can be very volatile, rather than fiat, is that if the value of the dollar starts to go down then the collateral can, at least in theory, pick up the pieces.

If this all seems vaguely familiar, it is because, in essence, reserve is, pretty much, a so-called algorithmic stablecoin. These cryptos gained a lot of notoriety in May 2022. It was at that time that what was known as the UST algorithmic stablecoin became depegged from the US dollar. This caused its associated LUNA cryptocurrency to collapse, triggering a major market crash. It might be worth noting that potential investors may well be put off not just algorithmic stablecoins, but also the cryptocurrencies that help them maintain their prices in the wake of what happened in May. 

Reserve was founded by a group of tech investors, including current CEO Nevin Freeman and CTO Matt Elder, in 2018, with RSR going on the open market in 2019 and RSV coming out the following year. 

Finally, we need to point out that, because it is based on the Ethereum (ETH) blockchain, RSR is a token, rather than a coin. You might see references to such things as a reserve rights coin price prediction, but these are wrong, technically speaking. 

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Reserve rights price history

RSR price historyRSR price history from launch to present – Credit: CoinMarketCap

Let’s now cast our eyes over the RSR price history. While past performance should never be taken as an indicator of future results, knowing what it has done in the past can help give us some very important context if we want to either interpret a reserve rights price prediction or else make one of our own.

Reserve rights first came out in May 2019 and opened at $0.003612 from where it traded sideways for a year. By the end of 2020, after moving through some ups ($0.03137 on 31 August 2020) and downs ($0.007565 on 7 October), it closed the year at around $0.01996. 

BTS/BTC

0.00 Price
0.000% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.00000002

XRP/USD

0.48 Price
-0.020% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.00600

DOGE/USD

0.06 Price
-0.280% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.0007923

BTC/USD

19,281.40 Price
+0.000% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 60.00

Early 2021 saw the crypto market go through a bullish phase, and RSR became caught up in the action, hitting a periodic high of $0.07754 on 13 February, closing March at $0.09012 and reaching an all-time high of $0.1189 on 16 April 2021.

After that, though, the price collapsed as the market was shaken by the Great Crypto Day Crash of 19 May 2021, although there was something of a recovery later on in the year, most notably hitting $0.05798 on 2 December. After this, though, there was a fallback and the token closed 2021 at $0.02897.

So far, 2022 has been a poor time for the crypto market and reserve rights has been one of the cryptocurrencies to have suffered in weak markets. While its price initially rallied, with an intraday high of $0.03281 on 5 January, the token then dipped, and things were made worse following the crisis that engulfed UST and LUNA, with RSR dropping to a low of $0.003344 on 12 May.

Since then, the movement of the reserve rights price has been upwards, albeit with more peaks and troughs than many investors would like and, as of 23 September 2023, it was trading at about $0.00745. At that time, there were 42.3 billion RSR in circulation out of a total supply of 100 billion. This gave the token a market cap of around $314m, making it the 103rd largest crypto by that metric. 

Reserve rights price prediction round-up

Now, let’s take a look at some of the reserve rights price predictions that were being made as of 23 September 2022. It is very important to remember that price forecasts, especially when it comes to something as potentially volatile as cryptocurrency, very often turn out to be wrong. Also, many long-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice. 

First, CryptoPredictions.com had a reserve rights price prediction for 2022 that said the token could have risen and closed the year at about $0.0089. The site predicted the crypto could have then reached $0.006899 in September 2023 and $0.0102 a year after. By September 2025, the site suggested that RSR could be worth $0.01229 before it could have climbed to $0.0136688 12 months after that. The site added that the token could have closed 2026 at around $0.0139.

Next, CaptainAltCoin made an RSR price prediction that suggested the crypto was in for a tough few months as it could have closed the year at $0.0043, before it could have gone on to $0.0092 in September 2023. By 2025, the site said that the token could be priced at $0.014 before it could have creeped up to $0.0141 in September 2027. The site then went on to make a reserve rights price prediction for 2030 that it could have achieved $0.035 that year and $0.07 in 2040.

Meanwhile, Gov Capital had a reserve rights crypto price prediction that said the token could have closed the year at $0.0115, could have gone on to $0.0417 on 23 September 2023, and could have moved up to $0.0857 a year from then. The site then went on to make a reserve rights price prediction for 2025 that suggested the token could have started the year at $0.0931, could have reached $0.138 on 23 September and could have closed the year at $0.148. The site went on to argue that RSR could have been worth $0.196 on 23 September 2026 and could have reached $0.264 a year from then. 

Finally, WalletInvestor was far more bearish when it came to making a reserve rights price prediction and suggested the token was in for a bit of a scare over the coming 12 months. The site predicted that RSR could have fallen to $0.000639 by September 2023. 

When considering an RSR token price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. And never trade with money that you cannot afford to lose.

FAQs

Is reserve rights a good investment?

It is difficult to tell. It is worth noting that there may well still be some notable concerns about algorithmic stablecoins following the depegging of UST in May. A lot will depend on how the market in general behaves in the future. 

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the reserve rights token is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.

Will reserve rights go up or down?

It is hard to say. While the likes of Gov Capital are optimistic when it comes to reserve rights’ future, sites such as WalletInvestor are far more pessimistic as to the token’s future price. It is important to remember that price predictions very often turn out to be wrong, and that prices can go down as well as up in the volatile crypto market. 

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether RSR is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.

Should I invest in reserve rights?

Whether you should invest in RSR is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research and never invest more money than you can afford to lose because prices can go down as well as up.

Further reading

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The difference between trading assets and CFDs
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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