StableCoin has recently released some unfortunate announcement, the project known as Basis will be shutting down and returning the majority of capital raised to investors.
While the firm manage to successfully raise a total of $133 million in funding, regulatory problems accrued during their attempts to get their algorithmic Stablecoin off the ground, according to information provided to The Block.
Due to this, Basis will have to shutdown it’s operations and return the majority of capital raised to investors. Some of these backers include, Andreessen Horowitz, Bain Capital Ventures, Lightspeed ventures and more.
While it’s currently unknown which regulatory agency is placing pressure on Basis. Nor the reasons as to why their coming down hard on their business model, or project.
One of the investors behind Basis had this to say about the team,
“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.”
Hopefully in the future if the team manages to find another way that allows them to relaunch Basis under a different name or project, they’ll at least have a sure way of getting funding.
Many had viewed Basis as some of the most innovative mathematics in the world applied to money. It’s quite a shame that the project had to be shut down in such a manner, especially with how amazing the tech behind it was supposed to be. Even so, this just comes to show how easily some business can go down under if they don’t make sure to cover all of their tracks.
How do you feel about Basis shutting down?
Let us know your thoughts.