How Profitable will the Libra be for its Early Investors?

In a previous article, we, briefly, examined Facebook’s newest adventure, Project Libra, and the characteristics of its to-be cryptocurrency, Libra. Particularly, we looked at the design of the underlying Libra Reserve, which according to documents released so far by Project Libra, it is to be a reserve of liquid assets in different currencies to fully back any Libra in circulation.

To recap, the Libra Reserve will function as the de facto foreign exchange reserve for Libra, the Libra will likely go live at a predefined peg level, e.g. 1 Libra = 1USD, and the reserve will function as the bottom line of value exchange, that is, if the market value of Libra drop below the peg level, one can always exchange it (with some twists) against the reserve at the fully pegged value, therefore, pocketing the positive difference.

Original source
https://hackernoon.com/how-profitable-will-the-libra-be-for-its-early-investors-983e32dd17b?source=rss----3a8144eabfe3---4

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