More than 40 investors, including a prominent businessman and managing hedge funds Peter Thiel, Coinbase, Distributed and Global GSR.IO was supported by the startup Reserve. It is reported Coinspeaker.
According to the developers, Reserve is intended “to add stability to the volatile market of crypto-currencies”. They also noted that the new coin is an alternative to cash, which has a relatively stable purchasing power, it has a high transaction rate and low overhead, and it is “not suitable for criminal use”.
“In addition to our well-known investors, we are also working with the founders and former leaders of TechCrunch, Betfair and Tinder, and three early team members of PayPal, incubators of start-UPS and various influential cryptocurrency funds, including NEO Global Capital, Fenbushi PreAngel, etc.” — said the CEO of the project Reserve Nevin Freeman.
Also, according to Freeman, unlike other similar projects, the Reserve “will not fail”.
Stablon Reserve is tied in a ratio of 1:1 to the US dollar. It is also noteworthy that the new coins provided by the cryptocurrency.
In the first round of funding, the Reserve has managed to attract $5 million investment. However, despite some success, the idea of the project criticized many members of the crypto community. So, many believe that the underlying new stablon different cryptocurrencies themselves are very volatile in price, which leads to high requirements on collateral. The last maybe two to three times greater than the market capitalization of the coin Reserve.
Note that Reserve is not the first pegged to the US dollar stablon on the market. Recently, the team TrueUSD raised $20 million from Andreessen Horowitz, BlockTower Capital and other major investors. There is also quite an ambitious project Basis, in which investments exceeded $130 million, despite the criticism from many experts.
ForkLog also previously reported that on the background of the deep recession of activity in the cryptocurrency market, the company Tether “printed” an additional 250 million tokens USDT, which is very popular among traders.