Basis, one of the earliest DeFi stablecoins in the industry, has been resurrected into Basis Cash and relaunched by a new anonymous team. In an interview with CryptoSlate, the project’s anonymous lead Rick Sanchez said that his developer group decided to remain anonymous to avoid censorship, adding that the sole motivation behind Basis Cash was academic satisfaction.
Early DeFi protocol Basis comes back with a bang
One of the earliest DeFi algorithmic stablecoins, Basis, is being brought back from the grave. The protocol was launched in 2018 in a bid to create a fair economic system that works for everyone. Basis’ big idea—to create a crypto token that people would actually utilize instead of using to speculate—attracted a serious group of investors, raising $133 million in funding.
However, increased regulatory pressure from the SEC forced former Princeton graduates Nader Al-Naji, Lawrence Diao, and Josh Chen to shut down the project.
And now, two years later, a five-strong group of anonymous developers has decided to resurrect the project and build a new network on the ambitious foundations set by the original Basis.
The new project, called Basis Cash, has no venture capital funding, no token sale, or any pre-mined tokens. The only dump, as the project’s developers put it, will be the community’s. Basis Cash and its new developers have decided to build the project on Ethereum.
In an interview with CryptoSlate, Rick Sanchez, the anonymous lead developer of Basis Cash, explained why they decided to resurrect the project and why it differs from other elastic coins that have popped up on the market.
Cryptoslate: How exactly did the last project fail despite the heavy funding? Why do you think the SEC and other regulators stopped it?
Rick: The reasons for the Basis failure is covered in their now-defunct site basis.io. The SEC approached the founding team from Princeton regarding issuing Basis Bonds and Basis Shares—which have serious security-like characteristics. As in, users buy into Basis Shares for the expectation of seigniorage, and Basis Bonds for the expectation of higher redemption when the peg stabilizes.
Cryptoslate: What’s your background and how does it connect to your role in Basis Cash?
Rick: I’ve been a close observer and supporter of the Basis project and think it’s one of the best ideas that have been announced in the blockchain industry. The entire point of creating the project anonymously is to ensure the project can be censorship-resistant. The SEC cannot shut us down because we’re anonymous, received no funding, have no large backers, and have no incentives to run this project other than academic satisfaction.
I am one of the lead developers of the project. What I can say about the group (five of us in total) is that we mainly come from academia and have spent significant time studying basis and other algorithmic stablecoins.
Cryptoslate: How is Basis Cash different from AMPL and other elastic-supply coins?
Rick: AMPL actually doesn’t have a real monetary policy. Whenever demand for the currency changes, there is no mechanism exogenous to the stablecoin that can absorb the demand volatility—it simply changes the supply. While the nominal money supply changes when a rebase is triggered, in reality, the money supply remains the same, as nominal supply value remains the same.
Basis and Basis Cash both have exogenous mechanisms that contract and expand the money supply, which is handled through issuance and redemption of Basis Bonds. Bonds are issued to buy back the Basis Cash money supply when demand falls and redeemed at a higher price to expand the money supply when demand increases.
Cryptoslate: What’s next for Basis Cash?
Rick: We’ve finished writing the contracts for Basis Cash and are getting the codebase reviewed by inbound requests from several serious minds in crypto. Lots of good feedback coming in.
While our marketing may appear to be degenerate and unserious, we are actually solely motivated in using the current friendly sentiment towards new experiments in crypto to make sure the Basis Protocol can be launched in a censorship-resistant and fairway. We are committed to not taking a single dime from the project and will continue to maintain the codebase with our community and ask for donations where they’re necessary to offset the necessary costs.
The Telegram group’s other admin is DeFi Morty, who wears an eyepatch, hence he’s a bad Morty. We are excited to see what the team of Bad Morty and Rick Sanchez can achieve in DeFi space.
Acting Comptroller of the Currency Brian Brooks predicted a lineup of cryptocurrency banking and clarification actions will emerge from the Trump Administration during its final days.
The chief national banking regulator was speaking on CNBC Squawk Box:
“I don’t think we need 50 regulations, but what we do need is clarity about what’s allowed,” he said. Brooks cited banks plugging into “directly into blockchains as payment networks” as one place where “the answer has to be yes.”
Brooks seemed to imply that the crypto banking clarity coming “in the next 6 to 8 weeks” would have a positive impact on bitcoin‘s price.
“It may have been a bubble two years ago, but with more clarity institutions that see this is a real thing are going to adopt at scale, which they’ve already started to do so,” Brooks said. He said regulatory clarity “are the things that are driving prices at this point.”
Brooks refused to directly answer show hosts’ questions about the rumored self-hosted wallet regulation supposedly coming out of the Treasury Department. Last week, Brooks’ former boss, Coinbase CEO Brian Armstrong, publicly suggested on Twitter that his current one, Treasury Secretary Steve Mnuchin, would stifle crypto innovation with a slap-dash final regulatory push.
“We’re very focused on getting this right, we’re very focused on not killing this, and it’s equally important that we develop the networks behind Bitcoin and other cryptos as it is that we prevent money laundering and terrorism financing so believe me, there’s a balance here and it’s going to work for everybody,” he said.
Over 200,000 Bitcoin Moved Out of Long-Term Storage Since November
Unchained Capital revealed the news via a data visualization on Dec 3. Unchained’s ‘HODL Waves’ metric measures the activity of bitcoin by the length of storage. The total share of the bitcoin supply locked in storage between five and seven years fell from 5.48% to 4.67% between Nov 1 and Nov 30. Some Long-Term Investors … Continued
Approximately $4 billion worth of bitcoin which had been inactive for between five and seven years was moved out of long-term storage following November’s massive price rally.
Unchained Capital revealed the news via a data visualization on Dec 3.
Unchained’s ‘HODL Waves’ metric measures the activity of bitcoin by the length of storage. The total share of the bitcoin supply locked in storage between five and seven years fell from 5.48% to 4.67% between Nov 1 and Nov 30.
Some Long-Term Investors Take Profit
Investors who locked their coins into storage in 2013 did so at a price level that averaged between $134 and $1,151. In 2014 and 2015, the price averaged between $500 and $750.
With bitcoin closing at $18,702 on Nov 30, long-term investors would have made anywhere between 1524% and 13,856%.
According to the HODL Waves calculation, 1.19% of the bitcoin total supply left this storage category and became active on-chain.
Given the current total supply of 18,60,637.5 BTC at press time, this represents roughly 200,000 BTC, currently worth just over $3.8 billion.
Bitcoin HODLers Not Relenting
The data reveals a mix of long-term strategies. The vast majority of long-term investors are not only holding, but also increasing their holdings.
Whereas the previous five to seven year long-term storage category fell more than 1%, the over ten-year storage category actually rose 0.19% from 9.73% to 9.92%.
The long-term storage category between seven and ten years also rose 0.2% from 7.08% to 7.28%. Similarly, the three to five year storage category jumped 0.69% from 10.06% to 10.85%.
In fact, the data shows that it’s mostly the shorter-term storage categories that witnessed holding declines. Overall, more than 61% of bitcoin’s total supply has not moved at all in more than a year.
This data, some argue, would seem to validate the position that bitcoin could be viewed more as a store of value asset and an inflation hedge versus just a speculative instrument.
On Nov 19, BeInCrypto reported that Glassnode data had revealed a huge surge in creation of new bitcoin addresses, only bettered in January of 2018.
On-chain analyst Willy Woo predicted that bitcoin’s Network Value Transaction Ratio (NVT) all-time high in mid-November was driven by the presence of “underlying long term investors.” This he said, would drive bitcoin to a new all time high, which subsequently took place on Nov 30.
David is a journalist, writer and broadcaster whose work has appeared on CNN, The Africa Report, The New Yorker Magazine and The Washington Post. His work as a satirist on ‘The Other News,’ Nigeria’s answer to The Daily Show has featured in the New Yorker Magazine and in the Netflix documentary ‘Larry Charles’ Dangerous World of Comedy.’ In 2018, he was nominated by the US State Department for the 2019 Edward Murrow program for journalists under the International Visitors Leadership Program (IVLP). He tweets at @DavidHundeyin
OMG Network acquisition raises its token price by 18%
TL:DR Breakdown: Ethereum-based OMG Network has been acquired by a Hong Kong blockchain venture capital firm. The announcement brought over an 18 percent price increase for the native token, OMG. The native cryptocurrency of the OMG Network (OMG) noted a two-digit percentage increase today. The development follows an announcement that the network has been acquired […]
Ethereum-based OMG Network has been acquired by a Hong Kong blockchain venture capital firm.
The announcement brought over an 18 percent price increase for the native token, OMG.
The native cryptocurrency of the OMG Network (OMG) noted a two-digit percentage increase today. The development follows an announcement that the network has been acquired by Genesis Block Ventures (GBV), a blockchain-focused venture capital investment company. GBV’s plans for the blockchain network is geared at accelerating more adoption and expanding its reach across countries in Asia and beyond, according to the announcement on Friday.
OMG Network sets for adoption
In 2017, the OMG Network was established as a subsidiary of SYNQA, a holding computer in Asia that specializes in blockchain development for fintech, online payment, and digital transformation. The OMG Network serves an Ethereum-based network that allows users to process transactions on Ethereum off-chain at a faster and reduced fee. In August 2020, Tether had partnered with the OMG team to host the popular US dollar-backed stablecoin, USDT, on the OMG Network.
However, following the acquisition by GBV, the network’s team and business will be transitioned from the initial parent company, SYNQA, to Genesis Block, in a bid to spearhead more growth and adoption for the blockchain network. Meanwhile, the acquisition today could be viewed as an important development for OMG users, as the native token surged by 18 percent since the announcement today.
OMG reacts to new acquisition
According to Denis Vinokourov at Brokerage Bequant in London, “OMG surged higher overnight in reaction to the news that Hong-Kong based OTC trading firm is to acquire OMG Network.” The cryptocurrency increased from $3.74 to $4.41, making over 18 percent price growth. In August, the token grew by more than 200 percent due to the craze in the decentralized finance (DeFi) market, which, in turn, increased the activities on the network.