Report: Stablecoin Basis To Close
According to a news report by Cointelegraph, Basis, a stablecoin which raised $133 million this year will cease operating and return funds to investors. Among these, some high profile tech and fintech people, like Andreessen Horowitz and Bain Capital Ventures.
The reason behind this decision seems to be related to the increased regulatory pressure, which treats some algorithmic coins (like Basis) as securities, meaning owning / trading them should be supervised by a financial authority.
Other stablecoins you may have heard of: Pax, GUSD or USDC. Total trading of stablecoins reached $5billion during the last 3 months, according to the same source.
As I said in a previous article, regulation is starting to balance the crypto market, and I don't think this is necessarily a bad thing. Some stuff will get lost in the process, but other stuff will thrive.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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@dragosroua,
Yeah this might be a superb idea to control stable coin scam that could happen in future! Coz at this point stablecoins could make more marketcap than other cryptos! So their actions should be monitored before something goes wrong!
Cheers~
I think stable coins have less appeal with crypto down. Now you can just trade back into fiat without any worry about gains :(
Mildly regulations could become a blessing for the overall cryptomarket. If will give people who didn't invest yet a safer feeling about the cryptomarket, which could result into new fiat money flowing into the cryptomarket!
Lot's of fresh fiat and investors is all we need to have a new bear market. But the question is how to attract both!
Cheers,
Peter
I have a feeling you wanted to write "bull market" there...
Indeed I did.
It is like the first days of January were you keep on writing down the old year.
So used to the term bear market that I did wrote that down, while I am hoping on finally a bull market!
I wonder how regulations will affect other algorithmic coins.
As far as I understand, the difference lies in how the "balancing token" is treated.
In order to have a stable peg, you must have a balancing token that will be linked to the main token and bought / sold as the value of the main one varies. In Basis' case this was treated like a "bond", whereas other algorithmic coins are treating it like a "share"...
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