Huobi Prime will host an initial exchange offering (IEO) for Reserve Rights token (RSR). It is expected to begin on May 22.
The purpose of RSR is to theoretically ensure that Reserve token (RSV) stablecoin maintains parity with the US dollar (USD).
What Is Reserve?
The project is focused on developing payment solutions for emerging markets with immature banking and weak financial systems by creating a universal store of value in three phases. There are defined on its website as such:
“1.The centralized phase — where Reserve is backed by US dollars, which are held by a trust company.
2. The decentralized phase — where Reserve is backed by a changing basket of assets in a decentralized way, but still stabilized in price with respect to the US dollar.
3.The independent phase — where Reserve is no longer pegged to the US dollar, with the intent of stabilizing its real purchasing power regardless of fluctuations in the value of the dollar.”
RSR will theoretically be used to ensure that RSV remains pegged to the US dollar before it develops independent purchasing power. Supposedly, RSR and collateral cryptocurrencies will be used to ensure that the value of one RSV does not deviate from one dollar.
The project is supported by PayPal co-founder Peter Thiel, Ran Neuner, and Mike Arrington of TechCrunch as well as the President of accelerator YCombinator Sam Altman.
IEO Vs. ICO
Initial Exchange Offerings (IEOs) have become a new form of fundraising for new digital assets. They evolved from the Initial Coin Offerings (ICO) which became highly popular in 2017.
Huobi Prime was launched in March 2019 by the cryptocurrency exchange Huobi to host IEOs. RSR will be the third IEO hosted on the platform.
How do much money Reserve will raise during the RSR IEO? Let us know what you think in the comments below!