Coinbase Ventures and two other significant venture capital firms IOSG and Paradigm have participated in the $12 Million fundraise for Decentralized Trading Platform Synthetix.
The three VCs funds bought SNX tokens directly from Synthetix treasury.
DAO Synthetix Raises $12 Billion in Investment
As per the announcement from synthetic asset protocol, Synthetix, the firm has raised a massive $13 Million in a funding round led by Coinbase Ventures. Paradigm and IOSG also participated. Synthetix said that the SNX tokens were purchased by the funds. The announcement stated that the investment funds would participate in the Synthetic governance system and offer Liquidity in the SNX collateral form. The VCs invested directly through procurement of the Synthetix native token SNX instead of wiring funds to the founders. Synthetix is a platform that allows the users to trade synthetic assets like Brent Crude oil future. The developers can also create new assets with the SNX tokens. It is run by a DAO pr Decentralized Automatic Organization in which the projects are administered through token holders who vote for the various decisions and steps taken by the project.
A tribe of crypto market experts has often questioned VCs’ role in Decentralized Finance space as they believe that the investment funds can harm the fundamental purpose of open and public protocols. However, Synthetix DAO onboarded three investment giants on its platform. Arun Balaji of Paradigm Investments said that the firm is excited to support Synthetix DAO as it is a powerful synthetic asset platform, and it is one of the “best community sin cryptos.”
Jordan Momtazi, one of the core contributors of Synthetix DAO, told Cointelegraph that “Many VC’s don’t add much value. The delta between quality VC’s and the rest is quite large,”. However, the firms participating in the $12 Million funding for Synthetix add value to the protocol rather than just investment. He said that Paradigm helps the protocol for recruitment and guiding in re-architecture while Coinbase Ventures has helped in cross-functional connectivity. He also added that IOSG is aiding the firm in recruiting a China Regional lead as it pushes to explore Chinese markets.
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