Basis Protocol shuts down, returns back investors money
Basis Protocol coined Basecoin an year back and today, it has announced that Basis program has failed and is returning back remaining capital to its investors.
Basecoin is a stable coin, like HUSD, PAX and DAI, where value of each token is pegged to 1 USD.
Preston Byrne, a twitter user who posts often about cryptocurrencies wrote an article about stablecoins where he said that they are slated for failure.
Note, my thesis about stablecoins that aren’t fully asset-backed and convertible was also written a year ago, to the day.
In a line: “stablecoins are doomed to fail.”https://t.co/tDo6yEhyLY
— Preston Byrne (@prestonjbyrne) December 13, 2018
While not all stable coins are doomed to failure, Basecoin was since it was not backed by assets.
Some users are really not happy with their exit.
They spent a lot of time building a ” bright website” with thousands of top backers in the world. Disgusting!
— leonardo da crypto (@Robinso74285772) December 13, 2018
Back in April 2018, Basecoin today raised a whopping 133 million dollars. Today, the company is returning back the investments of users but in ethereum.
Sounds awesome, right? The only major problem is ethereum has gone down from being a $900 coin to something that is less than $100 today.
This is interesting, they collected money when ETH price was $900 – now they are refunding 90% in the currency that you paid? So in essence , collect ETH at $900, sell them and refund investors at $85? @basisprotocol https://t.co/4wMRX53u8H
— Ran NeuNer (@cryptomanran) December 13, 2018
What are your thoughts on this?