Dozens of well-known venture capital firms participated in the initial coin offering (ICO) of American stablecoin cryptocurrency project Basis, formerly called Basecoin, which closed $133 million in funding.
Basis CEO Nader Al-Naji revealed the list of investors that funded Basis in a blog post on April 18. Investors included Bain Capital Ventures, GV, Stanley Druckenmiller, Kevin Warsh, Lightspeed, Foundation Capital, Andreessen Horowitz, Wing VC, NFX, Valor Capital, Zhenfund, INBlockchain, Ceyuan Ventures, Sky9 Capital, and “many more.”
Bain Capital Ventures and Lightspeed Ventures made their first ever ICO investment in funding Basis.
The investment round was reported in a Form D filing to the US Securities and Exchange Commission (SEC) on April 3 by Intangible Labs, LLC, which raised the funds through a Simple Agreement for Future Tokens (SAFT) between March 22 and April 3.
The project aims to create what is being called a stablecoin, or a cryptocurrency that maintains a relatively stable value, usually through a peg to a global currency like the dollar. Al-Naji believes that “the price volatility of cryptocurrencies is one of their biggest barriers to widespread adoption,” and Basis seeks to address that problem by “expanding and contracting the supply” of Basis tokens, “just like a real currency.”
Basis aims to function like a central bank for its cryptocurrency, using automated blockchain algorithms to expand and contract the supply of Basis tokens and distribute to members already participating in the system in order to decentralize monetary expansion.
However, Basis hopes to succeed where many other projects have made valiant attempts to create a stablecoin. Projects such as CoinoUSD, NuBits, MakerDAO, Tether, Saga, Carbon, Fragments, Stably and more have all claimed to be pegged to the US dollar. However, Basis appears to have much stronger and more robust institutional support.
Basis spokespeople declined to comment on the cryptocurrency’s expected launch date.