Basecoin, now known as Basis has managed to raise a whopping $133,000,000 in funding from an ICO. The ICO round that has raised this large capital for Basis featured a lot of big investors from the likes of Andreessen Horowitz, MetaStable Capital, Pantera Capital, Bain Capital and Digital Currency Group. These are just a few of the many big name investors who were already slated to invest into the Basis ICO back in October.
With Big Capital Come Big Ambitions
Of course when a company has managed to raise such a large amount in capital funding through an ICO, it also goes to show that the company has big intentions with the significant $133,000,000 funding. The real goal for Basis right now with all this funding is to work towards the creation of a stablecoin. This is the kind of cryptocurrency which, in theory, will be able to have prices that enjoy stability in an otherwise highly volatile ecosystem. The quest for a stable cryptocurrency like the stablecoin that Basis is proposing happens to be real and well sought after. That is the reason why so many of the big name investors have participated in the ICO to raise the $133,000,000.
The significance of this project and the need for stablecoin is so pertinent that Basis even managed to convince Bain Capital Ventures to make their first ever investment into tokens. This is not to say that Bain Capital Ventures is taking interest in the cryptocurrency world for the first time. The company also invested quite a bit into the parent company of CoinDesk – Digital Currency Group.
The Fundamental ‘Basis’ for Basis
The basic premise with which Basis has been working on is to look at the idea of central banking and how they are very well capable of keeping currencies stable. The problem that they face, which in turn results in currencies they are looking into to become unstable is nothing more than do to with human error.
This is why Basis is looking to utilize the $133,000,000 that it has raised through the ICO round to take the same methodology that central banking systems use and have software taking the helm without the erroneous human element. For most of the other stablecoins that have been proposed, the prospect of stability is based on them being backed by traditional fiat currencies. The issue with them is that there needs to be a fundamental trust in the parties regulating those fiat currencies to maintain stability. Basis is going to have a very simple approach of supply and demand in order to regulate the price of the stablecoin. The supply of the currency will increase with increasing demand and reduce with lessening demand – a simple manner of proportionate supply and demand.
Trying to imitate central banking systems within the blockchain ecosystem is something that the founder of Basis, Nader Al-Naji has been playing around with for a while now. The issue was blockchains did not exactly know the value of the token. Al-Naji had been in the works to bring about a certain sense of stability to Bitcoin for a few years now but with the emergence of oracles to help Al-Naji and the team of Basis out augmentd by the $133,000,000 raised in the ICO, it seems like a likelier task to achieve.
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