🚨 Synthetix Cancels $27M Derive Acquisition Following Community Pushback

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Synthetix has officially withdrawn its proposed $27 million acquisition of crypto options platform Derive after facing significant opposition from both communities. The deal, which involved a token exchange valuing 1 SNX at 27 DRV, was intended to integrate Derive into Synthetix's ecosystem.

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Key Concerns Raised:

·        Valuation Disputes: Derive community members argued that the exchange rate undervalued their platform, with some noting that Derive generates more revenue than Synthetix.

·        Token Dilution Fears: Critics highlighted plans to increase SNX supply from 330 million to 500 million, potentially diluting token value.

·        Lock-Up Periods: The proposed three-month token lock-up was seen as restrictive, though Synthetix attempted to mitigate this by exempting holders of less than 1 million DRV.

Synthetix strategy lead Ben Celermajer acknowledged the feedback, stating, "We have no intention of moving forward with something that was intended to be a collaborative and constructive endeavor."

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POLL: Was canceling the Derive acquisition the right move for Synthetix?

·        ✅ Yes, community concerns were valid

·        ❌ No, the acquisition had potential

·        🤔 Unsure, need more information

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