Reserve, a stablecoin which aims to compete with fiat currencies, has announced striking partnership deals with major investors such as Coinbase and Peter Thiel. Reserve is designed to combat high volatility of crypto assets, but, unlike Tether, it is not pegged one-to-one with any particular fiat currency.
The whole list of companies and individuals that agreed fund Reserve consists of more than 40 names. Together, all the participants have contributed USD 5 million in a seed round aimed at raising awareness of the project.
Nevin Freeman, the founder of Reserve, commented:
“In addition to our big-name investors, we are working with founders and early CEOs of TechCrunch, and Betfair, the Director of Product and Revenue at Tinder, three early, high-up PayPal team members, the technical founder of a multi-billion dollar telecommunications company, two heads of major startup incubators, other influential crypto funds like NEO Global Capital, Fenbushi and PreAngel, and others like that.”
The goal of Reserve stablecoin is to become an alternative to cash. Ordinary cryptocurrencies cannot compete with cash because of unstable purchasing power and costly transactions. Although there are several other stablecoins around, the developers are skeptical about these projects:
“The reason we’ve gone through all the effort to design another stablecoin protocol is that we are convinced that all of the existing attempts are likely to fail as well. Leaders of the crypto ecosystem have been aware of the need for a stablecoin for years. The financial incentive to create the winning stablecoin is immense.”