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.”
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.