Stablecoin, Basis, Is Shutting Down


In 2018, one of the trends that caught momentum in the cryptocurrency sector was the potential of the “stablecoin”, a cryptocurrency actually pegged to an asset or currency. This makes sense, considering that many feel as though the cryptocurrency bull run of 2017 was fueled by speculation more than anything else, and for the markets to grow, cryptocurrencies would actually need to be related to actual tangible assets.

One of the stablecoins that raised a substantial amount of money and gained exposure was named “Basis”. The project was successful and raised over $130 million in its initial coin offering (ICO). As if that wasn’t enough, it received capital from some of the most well-known names in venture capital, such as Bain Capital Ventures, Andreessen Horowitz, and Google Ventures.

One of the other companies that also invested was Digital Currency Group (DGC), which is widely considered one of the most important companies in the cryptocurrency sector. DGC has invested in Grayscale, which owns over 1% of all circulating Bitcoin, and Coindesk, a leading cryptocurrency media, and research website, as well.

However, it appears as though Basis will not be coming to fruition, as it ran into regulatory issues. One positive aspect of the situation is that the project will apparently return almost all of the funds that were invested.

Basis had a specific contract with investors where most of the money was legally required to be held, and not utilized until the stablecoin was actually launched. The company behind Basis, Intangible Labs, will be shutting down, as a result.