Intangible Labs Raises $133M USD For Proposed Stable Coinbr>
Cryptocurrency startup Intangible Labs has raised $133 million in a Series B funding round from a slew of big investors.
The latest funding round, which was structured as a private placement, was led by Bain Capital Ventures. About 225 accredited investors participated in the round, including Google’s venture arm GV, venture capital firm Andreessen Horowitz, and Lightspeed Foundation Capital.
Launched by three Princeton University graduates, Intangible Labs is developing a price-stable cryptocurrency, called Basis, with an algorithmic central bank that the company believes will make cryptocurrency stable and usable around the world. The company said Basis has all the benefits of cryptocurrency, but without the volatility that’s prevented mainstream adoption to date.
“At a high level, central banks maintain stability by expanding and contracting the availability of money,” Intangible Labs CEO and co-founder Nader Al-Naji said in blog post. “But bitcoin and other cryptocurrencies have a fixed supply that never expands or contracts. This is a key contributor to cryptocurrencies’ volatility, making them virtually unusable, other than for speculation.”
Basis is designed to keep prices stable by algorithmically adjusting supply when demand is rising. The expanded supply is designed to bring the Basis price back down. When demand is falling, the blockchain will buy back Basis. The Basis protocol is designed to expand and contract supply similarly to the way central banks buy and sell fiscal debt to stabilize purchasing power.
Nader Al-Naji said that the company is still deciding whether to issue tokens through a public crowdsale, as it is assessing the current regulatory environment.