Basis

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Basis can mean:

  • In futures, the difference in value between the future and the spot price (cash price minus futures price)

Basis is used to determine the best time to buy or sell, when to use the futures market to hedge a purchase or sale, the month in which to place the hedge.[1]

  • In options, the difference in value between a call option and a put option.
  • In cryptocurrency, it can refer to a digital asset designed to have a stable valuation by shrinking and expanding its availability.[2] Basis was known as Basecoin until its sponsor, Intangible Labs, Inc. announced it had raised $133 million in its initiative to make Basis a stable cryptocurrency.[3] Intangible Labs, Inc. stated in an SEC Form D filing that it had issued $125 million in a SAFT.[4] In a statement published on its website on December 13, 2018, Intangible Labs announced that it was returning investor monies and shutting down Basis stating, "Unfortunately, having to apply US securities regulation to the system had a serious negative impact on our ability to launch Basis."[5]

References

  1. Understanding Basis. Oxfordfutures.com.
  2. Princeton graduates' crypto-currency wins backing of big U.S. investors. Reuters.
  3. Introducing Basis, a Stable Cryptocurrency with an Algorithmic Central Bank*. Medium.
  4. Form D. SEC.
  5. Letter to Basis Community. Intangible Labs.