Professional investors move into cryptocurrencies, specifically into stable coin projects
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Professional and institutional investors are looking towards cryptocurrencies as initial scepticism is vanishing and more stable offerings are being put forward.
For instance, Basis announced in April 2018 that it had raised US$ 133 million in funding from Bain Capital Ventures, seasoned hedge fund manager Stan Druckenmiller, former Federal Reserve governor Kevin Warsh, Lightspeed Venture Partners, Foundation Capital, Andreessen Horowitz, WingVC, NFX Ventures, Valor Capital, Zhenfund, Ceyuan, Sky9 Capital, Digital Currency Group, and others.
The mechanism to counter volatility of the Basecoin price will be to tackle supply-and-demand discrepancies. When demand is rising, the system will create more Basecoins, and when demand is falling, the Basis will reduce the supply to support the price. Essentially, supply and demand are expanded/contracted as needed to maintain the pegging to the US$ and thereby make Basecoin attractive to professional investors who thus far shied away from cryptocurrencies due to excess volatility.
One could argue that the first step has been made. Professional investors are ready for stable coins. Fluzcoin is another one that shows great promise due to broad applicability for retail usage, for loyalty schemes, and for professional investors seeking sustained growth.
Fluzcoin’s Artificial Intelligence (AI) algorithm, EUNOMIA, overcomes crypto-economic volatility with real-time, computer-aided market corrections to the Fluzcoin supply and demand. The value generated by minting new Fluzcoins is maximized by Fluzcoin holders in the form of dividends; meaning the accumulation of Fluzcoin results in an appreciation path similar to traditional cryptocurrencies even though the value of an individual Fluzcoin may never skyrocket.