- Basis, the highly anticipated algorithmic stable coin project, shut down and announced it would return 90% of capital raised to its investors
- It didn’t mention that it was actually contractually obligated to do so
- Both USD and ETH/BTC investors received 90% of returned capital, USD investors at a notional value of 1:1, whereas Ether investors saw as much as an 85% discount to par
- Some of these investors have reached out to The Block under anonymity to share how the marketing of the sale differed from the underlying fine print in the pre-sale SAFT agreement
As originally reported by The Block in mid-December, Basis, the highly anticipated algorithmic stable coin project, decided to shut down and return nearly all capital raised back to its investors.
The firm, which raised $133 million in funding, ran into regulatory headwinds as it attempted to get its algorithmic stablecoin off the ground, returning 90% of the capital back to its investors, including Bain Capital Ventures, GV, Andreessen Horowitz, Lightspeed Ventures and a number of other firms.