Coinbase Lists Reserve Rights (RSR), a Dual-Token Stablecoin Platform Aimed at Creating a Collateral-Backed, Self-Regulating Stablecoin Ecosystem

Following the announcement, Binance's 'smart money' traders are increasing long positions on the altcoin. RSR has been active since 2019, aiming to upend the stablecoin ecosystem. It's an ERC-20 utility and governance token that underpins the Reserve Protocol, a dual-token system designed to back and stabilize the Reserve stablecoin (RSV) at a $1 USD peg. RSR, a non-stablecoin, provides governance and backstop insurance to its counterpart.

Reserve Rights (RSR) is a dual-token stablecoin platform that aims to create a collateral-backed, self-regulating stablecoin ecosystem. The platform's utility and governance token, RSR, is an ERC-20 token that provides backstop insurance and grants governance rights to its stablecoin counterpart, the Reserve stablecoin (RSV), which is designed to remain stable at $1 USD.

RSR has been on the minds of crypto traders throughout 2024 as the asset continues to recover from the lows of the 2022 bear market. The token also received a boost when Coinbase announced that it would be adding RSR to its exchange, an integration that usually causes the underlying tokens to spike.

But in a side effect that has unfolded on Binance, the top traders are showing a strong bullish positioning heading into the Coinbase listing.

On Binance, the top-trader long/short ratio measures the share of total open positions held as longs by the top 20% of accounts by margin balance. A 65.48% long ratio means these "smart money" participants are overwhelmingly betting prices will rise.

At the same time, RSR is also receiving attention due to its link with incoming SEC Chair Paul Atkins.

Atkins, who disclosed his crypto investments and has no current connection with RSR, joined the Reserve Rights Foundation as an advisor in its early stages.

Since Atkins passed his confirmation hearing, RSR has went on to post an impressive 22% rally.

Technically, he hasn't been seated as Chair yet, and traders may be anticipating some benefits for the project from this old association.

Atkins has also promised to bring crypto-friendly reform, and this connection could disproportionately impact his former associates.

That isn't to say that anyone has alleged that Atkins will engage in corruption to unfairly boost RSR. However, since becoming President, members of Trump's family have been involved in several controversial crypto deals. This precedent may be encouraging traders to believe in the importance of political connections.

For now, market narratives are very important in this industry. As Atkins officially begins his career as the SEC's new Chair, RSR may continue to receive indirect benefits.