Coinbase has recently added Reserve Rights (RSR) to its platform. RSR is a stablecoin project that aims to establish a stablecoin ecosystem backed by collateral and self-regulation. The announcement of Coinbase listing RSR has led to an increase in long positions on the altcoin by Binance's "smart money" traders.
Paul Atkins, soon to be the SEC Chair, was an early advisor for RSR. Despite this, he is currently not actively involved in the project. Speculators of RSR may be hopeful of potential advantages stemming from Atkins' previous connection to the project.
RSR, created in 2019, seeks to disrupt the stablecoin ecosystem. It consists of an ERC-20 utility and governance token that supports the Reserve Protocol, a dual-token system designed to support and stabilize the Reserve stablecoin (RSV) at a $1 USD peg. RSR, not being a stablecoin, provides governance and insurance backing to its stablecoin counterpart.
While RSR's valuation peaked in 2021 and has since been relatively quiet, it has regained attention in 2024. The recent announcement of Coinbase listing RSR caused a significant price jump of nearly 10%.
Coinbase's decision to list RSR, made known almost three weeks ago, typically results in a surge in the value of the tokens involved, as seen in this case. Additionally, Binance traders have displayed a strong bullish stance towards RSR as the asset prepares for its debut on Coinbase.
The high top trader long/short ratio on Binance shows that smart money investors are predominantly betting on RSR's price increasing. This positive sentiment is further fueled by the connection between RSR and the incoming SEC Chair, Paul Atkins. Despite Atkins not currently being associated with RSR, his recent involvement as an advisor has sparked a 22% rally in RSR prices since his confirmation hearing, indicating a hopeful anticipation of favorable developments.
Atkins has indicated a pro-crypto stance, promising crypto-friendly reforms. While no allegations of corruption to unfairly boost RSR have been made, previous controversial crypto dealings involving Trump's family members could be influencing traders to value political connections in the market.
Given the importance of market narratives in the industry, RSR may continue to benefit indirectly as Atkins assumes his role as the new SEC Chair.