Major Stablecoin Basis to Close, Return Funds to Investors: Sources

[Nikko]

Major United States-based stablecoin project Basis will shut down operations and return most of its funds to investors, crypto news outlet The Block reports today, Dec. 12.
Citing “multiple people with direct knowledge of the situation,” the reports states that the algorithmic stablecoin project is set to return the majority of the $133 million in funding it raised in a private placement in April. Basis’ investors include major names in venture capital, among them Bain Capital Ventures and Andreessen Horowitz.
The Block reports that the firm plans to communicate directly on the reported shutdown later Wednesday evening, again citing a source with “direct knowledge of the situation.”
In private correspondence with Cointelegraph today, Nevin Freeman, co-founder and CEO of competing stablecoin project Reserve, commented that the move is evidently due to regulatory concerns around one of Basis’ token types. Freeman stated that, as with other algorithmic stablecoins, Basis’ protocol implements a “secondary token,” in this case known as a “bond” token, which needs to be purchased in order for the primary token to keep its stable peg in place.

Readmore: https://cointelegraph.com/news/major-stablecoin-basis-to-close-return-funds-to-investors-sources