Nader Al-Naji, CEO of Intangible Labs, which is behind the project to create a "stable coin" Basis, confirmed earlier reports about the final closure of the project, noting that this difficult decision forced him to accept the existing rules of the Securities and Exchange Commission ( SEC). About this writes Forbes .
He also confirmed that the financing attracted earlier in the amount of $ 133 million will be returned to investors. Other recent names include Google Ventures, Andreessen Horowitz, Bain Capital, Digital Currency Group, MetaStable Capital, Pantera Capital, and PolyChain Capital.
“We met with the SEC to clarify many things. The SEC as a whole avoids definitely saying how everything will be. But after our meeting, we had the impression that we could not avoid classification as securities, ” said Nader al-Naji.
He added that the development of the Basis technology was almost completed and for the most part the company was simply waiting for the “green light” from the regulator.
When Intangible Labs originally published the white paper of the project in June 2017, Basis was described as an “algorithmic central bank” that would give users a stable currency for making financial transactions around the world that would not have cryptocurrency like Bitcoin volatility.
The Basis model assumed the automatic purchase of tokens at lower prices and the release of new tokens when the price goes up. Unlike most other stablecocks, whose price stability is achieved by pegging to the US dollar, other fiat currencies or other assets, the basis issue should have been managed by the “base bonds” and the “base shares” auctions.
Lawyers of the company, however, explained that the SEC is likely to regard the company's tokens as securities. Therefore, Intangible Labs should limit their ownership to only the number of accredited investors in the United States during the first year after release. And although many of the requirements regulators would be valid only for one year, the company in any case would have to create a centralized "white list" of users.
"I'm very disappointed. Refund is not what I wanted. Relaxing regulatory requirements would also be great for our technology and for the people who use it, ” added the head of Intangible Labs.
Nader Al-Naji admitted that his company's project was in a losing position, and for the reason that, unlike Bitcoin or Ethereum, Basis tokens have no actual functionality. He also advised other entrepreneurs who are considering launching stable coins, refusing to do business in the United States, not accepting money from American investors, and also to ensure that tokens have certain consumer functionality.
Also today, a project appeared on Twitter with sincere thanks to everyone who supported it in its desire to create a better monetary system and a promise to return.
We owe our sincere thanks to the monetary system. Until next time. https://t.co/69dzxKF08i
– Basis (@basisprotocol) December 13, 2018
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