U.S. cryptocurrency project receives $133 million investment
Intangible Labs, a startup launched by three Princeton University graduates, raised $133 million from a bevy of big investors. The announcement came from Intangible Labs Chief Executive Officer and co-founder Nader Al-Naji today. “Volatility of cryptocurrencies has prevented their widespread adoption,” Al-Naji said. “We are trying to build cryptocurrencies that have all the benefits of crypto but is stable.”
“The $133 million sale was structured as a private placement to accredited investors”, Al-Naji said. The company is still deciding whether to issue tokens through a public crowdsale, as it is assessing the current regulatory environment”, he added.
Intangible Labs, Inc. operates as a software development company. The company develops a price-stable cryptocurrency with an algorithmic central bank. The company’s investors included Bain Capital Ventures, Google’s venture arm GV, venture capital firm Andreessen Horowitz, and Lightspeed Foundation Capital, Al-Naji said. Billionaire hedge fund manager Stan Druckenmiller and former Federal Reserve Governor Kevin Warsh also invested in the company.
In an interview with Reuters in October, Al-Naji explained the idea for basis, which was formerly called basecoin, originated in June from his blog, Nader Theory, in which he broached the idea of a stable coin that can shrink and grow its supply on the blockchain.
Global regulatory crackdown on cryptocurrencies has plummeted the pace of virtual currency sales as doubts about their transparency and the risk of scams for investors has multiplied manifold. More than 500 digital technology startups around the world have raised funds by selling their own cryptocurrencies, or tokens, that ignores banks or venture capital firms as intermediaries.
Image via Shutterstock