Basecoin

Basecoin was a type of cryptocurrency. This basecoin was launched in 2018. The main purpose of launching this coin was to stabilize the price of the protocol. This coin was priced in USD and was a stablecoin so to speak. It was named Basis. BaseCoin was designed as if it were to give investors a store of value that wasn't plagued by the wild price fluctuations that most cryptocurrencies are. Like Bitcoin, it was shut down in late 2018 following the intervention of the US Securities and Exchange Commission (SEC), Bescoin. These were stablecoins and were designed to play a role in reducing high price fluctuations.

source

BaseCoin's original intention was to label its tokens as stable. Which is more commonly known as stablecoin and is the basecoin which means the value can be pegged to other assets. Basecoin was a type of cryptocurrency that claimed to reduce price volatility by pegging the currency to an underlying security. It was designed to prevent price fluctuations. But at the time their idea was criticized by crypto enthusiasts and economists as it misrepresented the process of securing a currency's value. Moreover, it was shut down and just before the shutdown, the coin's authorities announced that Basis, the parent of Bescoin, would shut down and that they would refund investors if the coin shut down.

The basecoin protocol was decentralized. But that made it difficult for BesCoin to verify how the market values its token. Even though it was decentralized, this system had to rely on data provided by third parties. Apart from relying on data provided by third parties, it had to adjust the number of tokens it issued based on how the market valued them. This made it difficult to determine how the market valued them. It has done this by using three different tokens namely, Basecoin, Base Bond, Base Share.

Among these three different tokens, if one token is worth more than a dollar, it will issue more tokens to the holders of BaseCoin base shares. And instead of releasing their new tokens directly into the open market, they instead allowed base share holders to sell tokens. On the other hand, if one of these three different tokens is worth less than one dollar, BaseCoin will issue Base Bonds. And this new bond will be converted into basecoin only when it reaches parity with its underlying assets. Thus these processes were ongoing.