Coinbase Ventures and Paradigm invest $12 million in Synthetix DeFi platform
Decentralized trading platform Synthetix has raised $12 million from venture capital firms Coinbase Ventures, Paradigm and IOSG. It's rare for venture backers to invest through the purchase of the platform's own token directly from its treasury, rather than transferring funds to its founders.
Synthetix is run by a DAO, or decentralized automated organization, which allows the project to manage itself without a traditional corporate structure. Token holders are usually encouraged to vote on the direction of the DAO.
In the case of Synthetix, a platform on which users can trade synthetic assets and commodities, they can also create these new assets using the platform's own synthetic token (SNX). The app has become a key component of decentralized finance (DeFi), with about $2.8 billion worth of cryptocurrency "locked up."
