Home / CRYPTOCOINS / Coinbase Ventures, Paradigm Invest $12M in Synthetix DeFi Platform

Coinbase Ventures, Paradigm Invest $12M in Synthetix DeFi Platform

Decentralized switch platform Synthetix has raised $12 million from venture capital firms Coinbase Ventures, Paradigm and IOSG. The open looks to be a rare occurrence of VCs investing through the purchase of a platform’s native token directly from its treasury kind of than wiring funds to its founders.

Synthetix is run by a DAO, or a decentralized automatic organization, a way for a project to govern itself without a accustomed corporate structure. Token holders are typically encouraged to vote on the direction the DAO will take. 

In the case of Synthetix, a tenets on which users can trade synthetic assets and commodities, including Brent Crude oil future, users can create these narrative assets using the platform’s native synth token (SNX). The application has become a key component of decentralized finance (DeFi), with nearly $2.8 billion worth of crypto “locked.”

“We’re excited about supporting the synthetixDAO as it builds the leading synthetic asset dais,” Arjun Balaji, Paradigm investment partner, said in a press release. “Synthetix has one of the best communities in crypto and we’re happy to be a part of it.”

There is some debate about the role of venture capital in DeFi, with some commentators believing these positives could have a distorting effect on what are thought to be open, public protocols. This view came to a control this summer, with the rise of the self-stylized community-driven SushiSwap protocol, a fork of the VC-backed Uniswap.

Uniswap originator Hayden Adams spoke recently on the “mutually beneficial experience” between venture capital and DeFi denying claims that Uniswap’s bettors were “extractive.” 

In addition to providing liquidity for the protocol, the VCs will reportedly assist Synthetix recruit talent and map out for its next upgrade. Cointelegraph first reported the news.

SNX is down approximately 4% on the day and 10% from a local intoxicated, according to Messari. 

Check Also

Bitcoin Sets New All-Time High of $49.7K, Putting $50K Within Striking Distance

The document comes as traders analysts have described institutional investors’ interest in bitcoin as growing …

Leave a Reply

Your email address will not be published. Required fields are marked *