In somewhat of a surprise announcement the CEO of Basis Nader Al-Naji announced that the cryptocurrency startup based in Hoboken, New Jersey completed a $133M private placement from some of the very top venture capital firms that included: Bain Capital Ventures, GV, Stanley Druckenmiller, Kevin Warsh, Lightspeed, Foundation Capital, Andreessen Horowitz, Wing VC, NFX, Valor Capital, Zhenfund, INBlockchain, Ceyuan Ventures, Sky9 Capital, and many others.
With this funding Basis will pursue its mission to build a cryptocurrency using an algorithmic central bank that will make cryptocurrency stable and therefore more acceptable for use around the world, according to the announcement made on CEO Nader Al-Naji’s blog.
The founding team comprised of all Princeton University graduates with degrees in computer science summa cum laude are Lawrence Diao, Josh Chen and Nader Al-Naji as CEO. Also, part of the team are CTO Brian Freyburger, General Counsel Susan Sidd, and Dionne Gordon Chief of Staff. The company now has posted on its web site a list of positions to be filled.
In CEO Al-Naji’s announcement he distinguishes cryptocurrencies from the currencies now use. The former do not have a mechanism to keep purchasing power stable which contributes to sporadic swings in demand resulting in dramatic price fluctuations. In contrast today’s physical currencies are managed by central banks that use monetary policy to mitigate volatility, expanding and contracting the money supply as needed. Consumers use these currencies with confidence because they reliably maintain their value as they change hands over time.
Since there is no mechanism in cryptocurrencies similar to the central banks of currently used currencies, the Basis team wondered why something similar could not be created. Their answer was Basis. They offer a white paper to more fully explain how Basis will serve to expand and contract cryptocurrencies as needed to keep stabilize them.
The founders recognize that they are building a new monetary system—and that something so ambitious requires the support of major institutions all over the world. With this private placement they say they have lined up the support of venture capitalists and crypto hedge funds, as well as major crypto exchanges, blockchain wallets, application developers, and economists. They see this international network of supporters as a critical foundation for Basis to become “the next great monetary system”.