The crypto-currency basecoin, a token with a rules-based monetary policy built into its blockchain system, created by three Princeton University computer science graduates. The crypto-currency is luring in investors, stated Nader Al-Naji the Intangible Labs CEO and co-founder.
The investors in Intangible Labs’ basecoin include Digital Currency Group, Bain Capital Ventures, Andreessen Horowitz, and AngelList CEO Naval Ravikant. The investors have purchased a unit of Intangible Labs which entitles them to basecoin in the future. Intangible Labs is a blockchain start-up that has created and distributed tokens to investors raising funds for projects. The company has held a presale to their investors before opening the token offering to the public or ICO.
Al-Naji, created the company with Lawrence Diao and Josh Chen, said basecoin fundamentally works just 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,” he added.
The idea stemmed from Al-Naji’s blog where he wrote on the concept of a steady coin that is able to increase and decrease its quantity on the blockchain. The idea went viral. This grabbed the attention of two of the current investors, Ravikant of AngelList – a website that brings together startups and investors – and Bain who both came to meet with Al-Naji to further discuss his idea. Al-Naki believes this is what got the ball rolling. The network is expected to launch anywhere between the next six months to two years.
“The problem we’re solving is simple: because bitcoin is so volatile, your mom is never going to buy her morning coffee with it,” Al-Naji said.
“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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