Decentralized trading platform Synthetix has raised $12 million from venture capital firms Coinbase Ventures, Paradigm and IOSG. The raise looks to be a rare occurrence of VCs investing through the purchase of a platform’s native token directly from its treasury rather 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 traditional corporate structure. Token holders are typically encouraged to vote on the direction the DAO will take.
In the case of Synthetix, a platform on which users can trade synthetic assets and commodities, including Brent Crude oil future, users can create these novel assets using the platform’s native synth token (SNX). The application has become a key component of decentralized finance (DeFi), with approximately $2.8 billion worth of crypto “locked.”
“We’re excited about supporting the synthetixDAO as it builds the leading synthetic asset…