/biz/ - Business & Finance

Thiel was asked about Reserve in this random interview YESTERDAY and admitted he just recently heard about Reserve. Apparently he has no particular interest in it personally, but one of his Jr. associates at his firm mentioned putting in like 75k from a highly speculative "discretionary fund" that he doesn't pay much attention to because it's less than 100k a pop. They talk about it around 16:20 here: https://www.losangelespost.com/2019/10/06/cardinal-conversations-reid-hoffman-and-peter-thiel-on-technology-and-politics/

RSR has VERY LITTLE utility in the Reserve ecosystem besides DILUTING THE SUPPLY. The team has created a false narrative that you can make a lot of revenue through RSR/RSV arbitrage, which would create demand for RSR in the long run. But is it true? Lets dive in.

1) An excess pool of RSV has to exist in order for RSR holders to be able to arbitrage with RSR. How is this pool of excess RSV created? A) when the collateral for RSV appreciates in usd value ABOVE the collateral target B) from tx fees collected for RSV transactions (velocity). That means you as a RSR holder CAN’T arbitrage until the vault is optimized to produce revenue/gain value against usd and/or a significant amount of RSV is being transacted with, which both are expected to occur YEARS from now.
2) RSV has to trade above $1 in LARGE volumes for the arbitrage process to be in any way profitable, which is very unlikely to happen – if RSV does trade above $1 peg, it will be in small amount of buy orders (explained in next pg). Not to mention that the Reserve foundation will ALWAYS have a first actor advantage, depleting the pool of excess RSV tokens BEFORE any of the regular holders will have a chance to participate
3) Even if the protocol has accumulated a deep pool of excess RSV through collateral appreciation and tx fees, arbitrage with RSR would still ONLY be profitable if RSV trades above $1 and ONLY for the quantity of RSV that is being bought above $1. Why would anyone buy RSV above $1? Rational/educated market participants who move large quantities of capital WONT, because if they wanted to buy/use RSV they could instead just mint it for $1 worth of collateral tokens instead of buying from the market for a PREMIUM price. Thus, one would project that the quantity of RSV trading above the peg is minimal, resulting in a very low level of utilization for the potential excess pool of RSV, which means close to NO ARBITRAGE REVENUE FOR RSR HOLDERS.

RSR is the most overvalued shitcoin available on the market right now.

>$291 million diluted market cap
>less than 7% circulating in the market, most of the supply owned by the team and seed investors
>their stablecoin RSV is still only $200k market cap (no adoption what so ever)
>barely functioning app with only a couple of thousand of users
>team has been in a stealth mode for more than over a year, community knows nothing about what's going on
>market constantly pumped and dumped by satsgang/spectre group

How can you justify the enormous evaluation when they have achieved close to nothing in 3 years of working on the project (started in July 2017)?

Listing some well known investors who got 10x discounted tokens does not count as a valid argument. A decent project should have more going on for it than just few known investors.

RSR is the most overvalued shitcoin available on the market right now.

>$306 million diluted market cap
>less than 7% circulating in the market, most of the supply owned by the team and seed investors
>their stablecoin RSV is still only $200k market cap (no adoption what so ever)
>barely functioning app with only a couple of thousand of users
>team has been in a stealth mode for more than over a year, community knows nothing about what's going on
>market constantly pumped and dumped by satsgang/spectre group

How can you justify the enormous evaluation when they have achieved close to nothing in 3 years of working on the project (started in July 2017)?

Listing some well known investors who got 10x discounted tokens does not count as a valid argument. A decent project should have more going on for it than just few known investors.

RSR is the most overvalued shitcoin available on the market right now.

>$315 million diluted market cap
>less than 7% circulating in the market, most of the supply owned by the team and seed investors
>their stablecoin RSV is still only $200k market cap (no adoption what so ever)
>barely functioning app with only a couple of thousand of users
>team has been in a stealth mode for more than over a year, community knows nothing about what's going on
>market constantly pumped and dumped by satsgang/spectre group

How can you justify the enormous evaluation when they have achieved close to nothing in 3 years of working on the project (started in July 2017)?

Listing some well known investors who got 10x discounted tokens does not count as a valid argument. A decent project should have more going on for it than just few known investors.

RSR is the most overvalued shitcoin available on the market right now.

>$344 million diluted market cap
>less than 7% circulating in the market, most of the supply owned by the team and seed investors
>their stablecoin RSV is still only $200k market cap (no adoption what so ever)
>barely functioning app with only a couple of thousand of users
>team has been in a stealth mode for more than over a year, community knows nothing about what's going on
>market constantly pumped and dumped by satsgang/spectre group

How can you justify the enormous evaluation when they have achieved close to nothing in 3 years of working on the project (started in July 2017)?

Listing some well known investors who got 10x discounted tokens does not count as a valid argument. A decent project should have more going on for it than just few known investors.