Cryptocurrencies have been too volatile for mainstream use. Loans, salaries and other basic financial contracts are poorly served by volatile currency. Stable currency isn’t available in much of the world. In many developing countries, the most stable currency available can devalue at a rate of 10% per year or more. Basis is designed to maintain a stable value and serve as a medium of exchange accessible to anyone with an internet connection.
Basis considered many alternative paths to launch to try and comply with the regulatory constraints while keeping your product compelling and competitive, including launching offshore, and starting off with a centralized stability mechanism. Ultimately, however, they don’t think any of the paths this considered are compelling enough for a users or your investors, or consistent enough with your vision to justify moving forward.
Basis Key Information
|ICO start||25th Sep 2017|
|ICO end||10th Oct 2017|
|Tokens for sale||1,000,000,000,000|
|Soft cap||5,000,000 USD|
|Price in ICO||1 SPH = 0.01 USD|
|Whitepaper||Click Here For View Whitepaper|
|Website||Click Here For Visit ICO Homepage|
The Game Change Team Behind Basis
Sixteen months ago, Basis set out with the ambitious goal of creating a better monetary system: one that would be resistant to hyperinflation, free from centralized control, and more stable and robust than the monetary systems that came before it. This was a goal we felt could create tremendous value for society if achieved, and one also felt well-positioned to take on. They started with a white paper that proposed a stable, decentralized cryptocurrency called Basis that had the potential to fulfill this vision.
Basis remains stable by incentivizing traders to buy and sell Basis in response to changes in demand. These incentives are set up through regular, on-chain auctions of “bond” and “share” tokens, which serve to adjust Basis supply. Because the Basis ecosystem would take some time to develop, if he knew need to initially play the role of trader ourselves, which would be capital-intensive. As such, after publishing your white paper, this raised a $133M round of financing.
Ability to launch Basis.
- As regulatory guidance started to trickle out over time, a lawyers came to a consensus that there would be no way to avoid securities status for bond and share tokens (though Basis would likely be free of this characterization).
- Due to their status as unregistered securities, bond and share tokens would be subject to transfer restrictions, with Intangible Labs responsible for limiting token ownership to accredited investors in the US for the first year after issuance and for performing eligibility checks on international users.
- Enforcing transfer restrictions would require a centralized whitelist, meaning your system would not only lose its censorship resistance, but also that on-chain auctions would have significantly less liquidity.
- Having fewer participants in the on-chain auctions adversely affects the stability of Basis, making Basis intrinsically less attractive to users. Additionally, imposing transfer restrictions on bond and share token auctions materially hurts ability to build the Basis ecosystem.
- While transfer restrictions can generally lapse 12 months after a security is issued, because the auctions of bond and share tokens governed by your monetary policy would be continuously issued, transfer restrictions and a centralized whitelist would be required indefinitely.
Capital to Investors
Although this isn’t the outcome any of Basis wanted, he knew going into this that were fundamentally making a binary bet on a favorable regulatory landscape. The binary nature of our bet is precisely why included a return of capital clause in your token sale to begin with, even though it was something they hoped never have to rely on. So, while they’re disappointed couldn’t launch the system they were all hoping to build, they’re thankful that can at least do right by investors given these circumstances.
Finally, Basis sincere thanks to everyone who supported and your project—from the extraordinary backers and partners who believed in, to the outstanding team that joined in your mission. You gave the opportunity to change the world, and with the lessons they’ve learned, they’re looking forward to trying again.
Basis is designed to keep prices
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, they refer to Basis as having an algorithmic central bank.