Synthetix (SNX), one of the leading decentralized finance (DeFi) protocols, has raised $ 12 million. Coinbase Ventures, Paradigm and IOSG are at the origin of this fundraising which made it possible to replenish the coffers of SynthetixDAO by buying tokens from the platform.
A new fundraising for Synthetix (SNX)
Coinbase Ventures, Paradigm, and IOSG, the venture capitalists, have invested $ 12 million worth in Synthetix by purchasing SNX tokens. This fundraising made it possible to replenish SynthetixDAO’s cash position in order to guarantee the management of the platform and its liquidity.
This is one of the first fundraising events directly carried out through a project managed by a decentralized autonomous organization (DAO) .
Last December, Synthetix had already raised $ 30 million via an Initial Coin Offering (ICO) in 2018 according to Crunchbase .
Kain Warwick, founder of Synthetix, previously said that synthetixDAO’s cash flow exceeded $ 1 billion and now charges more monthly fees (around $ 750,000) than it spends.
According to Jordan Momtazi, one of the main contributors to synthetixDAO, the 3 venture capital firms have contributed to the development of Synthetix .
Coinbase Ventures has been involved in the connectivity of many functions (internally as well as externally). Paradigm assisted in the establishment of a recruitment protocol (thanks to its human resources and its personal network). The latter also actively assisted in the coordination of the third version of Synthetix.
As for IOSG , the company helped Synthetix to break into China through its cooperation in hiring a regional manager. This alliance has also facilitated the creation of various educational content in Chinese.
This news comes at a particularly productive time for Synthetix. The team recently announced the launch of synthetic tokens replicating Tesla’s share price (sTSLA) .
Understanding the challenges of Synthetix
Designed in 2017 by Kain Warwick, Synthetix is a decentralized asset deployment protocol . It is also a platform for issuing synthetic assets in the form of ERC20 tokens, also called „Synths“.
Clearly, the latter allows its users to bet on the evolution of cryptocurrencies as well as on stocks, currencies, precious metals and many other assets.
Based on the Ethereum network , the platform also has its own token, the SNX. It has hit $ 25 as of this writing and has seen its value increase by over 60% in the past 30 days .
Synthetix is one of the main platforms for decentralized finance (DeFi), a sector that has been booming for several months. The DeFi market is literally exploding, which has allowed the platform to quickly gain popularity.
Since Synths are issued on Ethereum, it is possible to deposit them on other DeFi platforms (such as Curve or Uniswap for example) and use them to provide funds in exchange for interest .
Today, many institutions are preparing to invest in decentralized finance . Asset manager Grayscale recently revealed its interest in several DeFi tokens including SNX.