Synthetix Decentralized Financing Platform Raises $ 3.8 Million from Major Investors

Synthetix platform, specializing in the production of synthetic assets on the Ethereum blockchain, raised $ 3.8 million in a round of financing. The main investor was Framework Ventures.

According to a blog post, as part of a round of financing, Framework Ventures acquired 5 million Synth tokens (SNX). At the same time, the cost of one SNX token is about $ 0.76. Several other venture capital groups also acquired “large volumes” of SNX tokens, but wished to remain anonymous.

Framework Ventures will keep SNX tokens in a escrow account for 24 months as part of its commitment to Synthetix. The company will add these tokens to the SNX system, and will also take part in the management of the Synthetix community.

Framework Ventures co-founder Michael Anderson believes that Synthetix’s “endless liquidity” model is a major advantage over Decentralized Decentralized Financing platform. He noted:

“Synthetic assets are a financial basis that provides innovation outside of traditional financial markets and is likely to represent the next stage in the development of DeFi.”

Recall that in June Synthetix announced an attack that resulted in the loss of 37 million sETH tokens. Earlier, The Block analyst said that despite the platform’s popularity and convenience, the mechanisms guaranteeing the value of the issued synthetic assets have not been thought out, and their owners are at significant risk.

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Large players are gradually entering the decentralized finance industry. The other day, Binance and Chainlink announced that they would develop a decentralized finance industry, and in July Ontology and Opera teamed up to develop decentralized finance and applications. In addition, in September, Nasdaq launched an index for the DeFi industry.