A new cryptocurrency startup just completed a massive round of fundraising, reaping $133 million and attracting some serious heavy hitters in the world of finance.
Alphabet Inc. (a.k.a. Google) is one of more than a dozen investors backing Intangible Labs and its cryptocurrency called Basis. The full list of investors includes Bain Capital Ventures, Lightspeed Foundation Capital and billionaire hedge fund manager Stan Druckenmiller.
The coin is built on the Ethereum blockchain and is designed to adjust its supply automatically in order to hold a steady value and avoid the extreme volatility of the cryptocurrency market.
“At Basis, we believe the price volatility of cryptocurrencies is one of their biggest barriers to widespread adoption,” says CEO Nader Al-Naji. “Imagine you’re paid a salary of one Bitcoin per month. If the price of Bitcoin drops, you might not be able to make rent. If it rises, your employer won’t be able to afford your salary. It’s simply not a reliable means of payment.”
The company hasn’t yet decided whether it will issue a public token sale in the future.
It plans to scope out the regulatory market and monitor actions by the Securities and Exchange Commission before making a decision.