Basis, previously known as Basecoin, has announced that it successfully raised $133 million from Bain Capital Ventures, GV, Stanley Druckenmiller, Kevin Warsh, Lightspeed, Foundation Capital, Andreessen Horowitz, Valor Capital, Sky9 Capital and others.
Basis is a stablecoin which focuses on solving the problems present in cryptocurrencies. For instance, the inconsistent changes in price of altcoins makes it difficult for people to look at them as currencies rather than investments. Nader Al-Naji, CEO, and co-founder, said, “A currency needs to be stable in order for people to use it. Central banks apply monetary policy to mitigate currency volatility. Until now, there’s been no way to create a cryptocurrency with comparable benefits. And no way for cryptocurrencies to become true currencies.”
Al-Naji, along with the other co-founders of Basis, Lawrence Diao and Josh Chen, studied Computer Science at Princeton University. He also worked at Google as a software engineer before becoming a part of the crypto-project. In the latest post, he explained that cryptocurrencies should neither be limited nor infinite. Instead, they should opt for a demand and supply approach, as explained on the official website.
When demand is rising, the blockchain will create more Basis. The expanded supply is designed to bring the Basis price back down.
When demand is falling, the blockchain will buy back Basis. The contracted supply is designed to restore Basis price.
The Basis protocol is designed to expand and contract supply similarly to the way central banks buy and sell fiscal debt to stabilize purchasing power. For this reason, we refer to Basis as having an algorithmic central bank.
Light Speed Venture partner, Aaron Batalion, also congratulated the team on Twitter.
Thrilled to back @basisprotocol. As we navigate the future of normal people using crypto for real value exchange, we can’t just hope store-of-value coins stabilize someday. These new ideas are a prerequisite for so many use cases. https://t.co/YB3k9k9oHA
— Aaron Batalion (@abatalion) April 19, 2018
The company is based in Hoboken, New Jersey, and is yet to present a roadmap for the future. However, it promises a relaxed environment for the crypto community while becoming “the next great monetary system”.