Synthetix announces $12 million raise led by Paradigm, Coinbase Ventures, and IOSG

Synthetix announces $12 million raise led by Paradigm, Coinbase Ventures, and IOSG

As the crypto neighbourhood arguments VCs taking part in DAOs, Synthetix welcomes three brand-new Spartans

The Synthetix DAO has actually included some brand-new, perhaps unexpected voices to its governance.

Today the synthetic property protocol revealed a $12 million dollar fundraise led by equity capital companies Paradigm, Coinbase Ventures, and IOSG. The funds purchased SNX tokens directly from the DAO treasury, and "will contribute where possible by providing liquidity in the form of SNX security, and likewise take part in its rapidly developing neighbourhood governance system," the announcement reads.

" We're thrilled about supporting the synthetixDAO as it develops the leading artificial asset platform," stated Paradigm financial investment partner Arjun Balaji. "Synthetix has one of the best neighbourhoods in crypto and we're glad to be a part of it."

The financial investment is noteworthy for being among the very first instances of funds investing straight with and through a job governed by a DAO. How VCs communicate with DAO-governed protocols has been a hot subject of late, with some arguing that VCs shouldn't get preferential treatment, while others state that VCs are welcome, like any entity, to participate in an open environment.

A recent Tweet thread from Hayden Adams, the creator of Uniswap, made the case for dealing with VCs-- so long as they're the right ones.

Jordan Momtazi, a core factor to Synthetix DAO (and the former Synthetix COO pre governance decentralization), agrees that it's everything about which funds a protocol is dealing with.

" Many VC's don't add much worth. The delta between quality VC's and the rest is rather large," he said in a statement to Cointelegraph.

Each of the 3 VCs that joined in on the $12 million raise are bringing additional worth to the table that a specific investor may not have the ability to muster, Momtazi stated.

" Paradigm has been assisting the protocol hire talent through their in house HR and network. They've also been actively assisting think through our v3 preparation. Offering insights into approaches around our re-architecture," Momtazi stated. "Coinbase ventures has assisted with connectivity throughout lots of functions, both internally and externally."

IOSG, meanwhile, is assisting to spearhead Synthetix's push into China by helping with the hiring of a China regional lead, along with "face to face roadshows and developing academic material in Chinese."

The raise comes during a particularly productive period for Synthetix. The group just recently revealed the launch of artificial Tesla stock, and SNX was among the tokens that filings reveal may be the next to be noted as a Grayscale investment trust.

It's momentum with hopes the latest members of the neighbourhood can help bring forth.

" Having the sharpest minds applied to the hardest issues becomes part of the community's success and we eagerly anticipate working closely with these new stakeholders."