Princeton University Computer Science graduate’s bitcoin idea draws global investors attention

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.”

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