Synthetix and Derive Call Off $27M Merger
Synthetix, a platform for creating synthetic assets, and Derive, a decentralized options protocol, have called off a $27 million merger deal.
“After discussion and reviewing community feedback, the decision was made not to proceed with the merger,” Derive said.
The original plan called for Synthetix to reintegrate Derive by swapping DRV tokens for SNX at a 27:1 ratio. This would have required issuing 29.3 million SNX, raising concerns about the potential for devaluation of existing tokens.
Both parties have developed proposals to improve the protocols.
Critics have noted that Derive, which has outsold Synthetix in recent weeks, was undervalued in the deal. Synthetix has a market cap of $1.1 billion, while Derive is valued at $27 million. Participants also called the terms of the exchange unfair for DRV holders. 0 reply
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