Stable coin Basis is shutting down operations and returning investor funds

13 Dec, 2018
by Ryan Boltman
Stable coin Basis is shutting down operations and returning investor funds

The Block has reported that stable coin project Basis, has decided to shut down and return a majority of investors funds. Major investors include Capital Ventures, GV, Andreessn Horowitz and Lightspeed Ventures to name a  few.

The stable coin project is said to have had regulatory issues that could not be fully identified and would be shutting down according to sources with direct knowledge of the situation.

2018 has seen many stable coin projects come into play following the uncertainty surrounding the legitimacy of tether, which currently ranks #6 on CMC

New stable coin projects came into the fray in an attempt to give customers and investors more options in terms of stability when cashing out to digital fiat currencies.

New projects include Paxos, Circle, Gemini and several others. According to an investor who put money into the Basis project, the team is one of the best they have seen, saying this is an extraordinarily talented team with an extremely ambitious vision tackling a very difficult problem. He would neither confirm nor deny the rumors of a Basis shutdown, but he continued “our respect for this team is as high as it has ever been.”

Also Read: Cobinhood lists four stable coins to trading platform

Basis was going to be a stable coin that operated with three coins, a stable coin called base coin, "base bonds" and "base shares" would underlie the algorithmic protocol of the stable coin assisting in keeping the price stable. However, the plan in hindsight was a great idea however, the algorithmic model proved too difficult to implement with the U.S regulatory framework.

Basis raised $133 million in funding and have not specified how much, if all of the funds, will be returned. It seems likely all investors will be refunded.

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Do you use Tether as your stablecoin?

(37 votes)

Add a comment

Paxos? Who wants to work with Paxos? They even can not to make a proper audit
14 Dec, 2018 - 20:31
They can not do even something.
They do nothing.
Paxos is not our choice.
23 Dec, 2018 - 23:10
No one wants, believe
It is really shit now
Paxos becomes the worst coin
28 Dec, 2018 - 06:26
I think that paxos, gemini etc. are the next attempt to copy the Tether, but without any positive distinction.
16 Dec, 2018 - 16:23
I dont know how people can think that Paxos is a good coin, dont think so
09 Jan, 2019 - 16:39
who thinks so?
It is very funny
30 Jan, 2019 - 11:17
i bet PAX token will have same kind of death that happened to the Basis token. both are unsecured projects and definitely PAX does not have any potential for growth
18 Feb, 2019 - 18:58
Basis stablecoin is an example of what would happen to all those scam projects like PAX or TRUEusd. they are all financially unsecured and can freeze all the tokens at any moment of time
20 Feb, 2019 - 19:15
Gemini token is definitely going to have the same death as Basis just had. both projects are unsecured and scams
21 Feb, 2019 - 12:17
such situation that happened to basis will most likely happen with gemini token as well. the asset is not secured financially and can turn out to be scam
15 Mar, 2019 - 10:52

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