According to theblockcrypto.com the Basis Protocol (formerly named
According to blockcrypto.com Basis had a specific contract with investors defining how the majority of capital raised was required to be held. Most of the money was required to be held in the currency in which it was contributed and could not be touched by the company until Basis launched its stable coin.
Reasons for the planned windup include regulatory issues according to the publication cited, but maybe Preston BYRNE was right. In his – back then – very much discussed article published on October 13, 2017:
His piece back then summed up as follows:
It seems to me on this very cursory review that Basecoin depended on
- Printing free money and giving it to crypto-investors who are inclined to hold it and thus restrict supply;
- Providing financial incentives to subsequent investors to introduce money into the scheme and subsidize the price of the scheme if the price of a coin should fall below a certain level (say, $1);
- Vulnerable to a not-at-all-decentralized reliance on price indicators provided by unsupervised, unregulated third-party trading venues already suspected of serious shenanigans;
- Granting primary benefits of the scheme
to early buyers in an unregulated ICO; - Where every participant is betting on the price of their assets rising;
- Which cannot sustain itself without finding new buyers for
$ BASE. - But anyway, what we like about the Basis project is how they are doing the wind-up. Investors and the project team still are good friends and can leave the battlefield without any bad feelings.
ENVION actually should have taken the very same approach: give the money back to the investors without causing so much disgusting stress for everyone involved!
