New Jersey startup’s new crypto coin is being adopted by high profile investors from Silicon Valley. Three Princeton graduates raised funds and closed the first phase. The three intend on creating a crypto coin with the same name which will replace fiat money and hold a stable and predictable value better than crypto coin Bitcoin.
The first phase saw Bain Capital Ventures with $133 million private placement in ‘Basis’ – marking the firm’s first ever crypto coin purchase. Alphabet Inc. venture capital investment arm GV, Lightspeed Venture, Foundational capital, Andreessen Horowitz, Sky Capital, Stanley Druckermiller and former Federal Reserve governor Kevin Warsh – all invested in new venture.
The new crypto coin startup would like to design a cryptocurrency with a fixed value that will be tied to USD or consumer price index (CPI). This move with make the new crypto coin better for transactions. Of course there are sceptics judging the recent market swings as a sign that the crypto market isn’t a good investment and can’t replace fiat money in the future – keeping it back from mainstream market adoption.
The price of BTC is at $8,228, after falling 60 percent from high of close to $20,000 in December 2017. The cryptocurrency saw a 600 percent increase over last 12 months and investors have experienced massive highs and lows – last five years seeing 50 percent off the digital assets value. For bitcoin to break through $10,000, a break through second resistance level at $9,767.4 is needed. This is difficult due to Bitcoin Cash recent hard fork.
CNBC interviewed Druckermiller who commented that he wasn’t holding any bitcoin and wasn’t keen on trading with it due to its current volatility. There are a few more who are bearish on bitcoin – Fed contender Warsh wrote in Wall Street Journal:
“A new generation of cryptocurrencies is on the horizon, some of which might possess more of the attributes of money, better satisfying bitcoin’s founding purpose”
According to Bloomberg – the way Basis is approaching market holds scepticism. Blockchain consultant Preston Byrne described it as the “Worst idea in cryptocurrency”. Byrne suggests that the startup makes too many promises on its potential and implementation which has has no common ground with central banks.