Synthetix scuttles $27M Derive deal after community concerns
Synthetix has canceled its $27 million acquisition plan for the crypto options platform Derive due to negative feedback from both communities. The proposed deal involved exchanging 1 SNX token for 27 DRV tokens, but concerns arose regarding the token lock-up period and the valuation of Derive. Community members criticized the exchange rate as undervaluing Derive and expressed worries about potential dilution from Synthetix's plans to increase its SNX supply. Despite some support for the deal, Synthetix acknowledged that the overall response was not favorable and decided not to proceed. Synthetix will continue exploring opportunities for a decentralized derivatives platform on Ethereum. Derive, initially part of Synthetix, has sought to operate independently since its rebranding.
