Read further on why investors including Bain Capital, Digital Currency Group and others are taking basecoin so seriously.
U.S. investors, including the Digital Currency Group, have taken part in a pre-sale of basecoin, a crypto-currency which will be created by three Princeton University computer science graduates,Intangible Labs CEO and co-founder Nader Al-Naji.
The other investors in the pre-sale of basecoin include, Bain Capital Ventures, Naval Ravikant CEO of AngelList and Andreessen Horowitz, said Al-Naji.
While the Digital Currency Group has confirmed its participation in basecoin, Bain Capital, Pantera, and Andreessen Horowitz were not immediately available for comment.
During an interview Al-Naji revealed that these investors had purchased a stake at Intangible Labs, which entitles them to basecoin, which essentially is a token that follows a rules-based monetary policy, built on a blockchain platform.
Al-Naji did not disclose the investment amounts.
Intangible Labs is one of many blockchain start-ups that are creating and distributing tokens to investors to raise funds for their projects.
Typically, start-ups hold a token pre-sale to institutional investors before opening the token offering to the public.
Al-Naji, who co-founded the company with Lawrence Diao and Josh Shen, said basecoin essentially worked the same way as the Federal Reserve.
“We found a way to keep the price stable while keeping all the other great features of crypto-currencies such as decentralized, private, and international,” said Al-Naji.
The idea stems from Al-Naji’s blog, called Nader Theory, wherein in June, he toyed with the idea of a stable coin that can shrink and grow its supply on the blockchain.
When the blog went viral, Ravikant of AngelList, a website that connects startups to investors, and Bain came to see him to discuss the idea further.
This set the wheels in motion, said Al-Naji.
In the coming Tuesday, Intangible Labs is set to release its whitepaper. Its network will be launched anywhere between 6 months to 2 years, said Al-Naji.
“The problem we’re solving is simple: because bitcoin is so volatile, your mom is never going to buy her morning coffee with it,” said Al-Naji. “And you’d never even think about keeping all your savings in it. The fact is that bitcoin and other crypto-currencies are just playgrounds for speculation right now.”