Australia-based decentralised trading platform developer Synthetix has received $12m from investors including Coinbase Ventures, the corporate venture capital arm of cryptocurrency trading platform developer Coinbase, according to Coindesk.
Cryptocurrency-focused investment firm Paradigm and venture capital firm IOSG Ventures also participated in the round. The consortium invested in the company by purchasing its tokens rather than supplying capital directly to Synthetix’s executive team.
Synthetix operates an Ethereum-based digital platform for trading synthetic assets that represent the shifting values of fiat currencies, cryptocurrencies and other tradable commodities.
Synthetix is controlled by a decentralised automatic organisation (DAO), which enables the company to make decisions without the use of a traditional corporate structure. Token holders have the option to vote on decisions the DAO makes.
The funding will be used for liquidity for Synthetix’s platform, while the venture capital firms will also provide support on various initiatives.
Paradigm has helped Synthetix recruit new talent through its network and Coinbase has supported the protocol’s connectivity across functions.
IOSG has also assisted Synthetix’s expansion into China, by helping it recruit a lead for the region and with promotional activities for the platform.
Synthetix secured around $3.8m of funding in October 2019, when Framework Ventures purchased 5 million Synth tokens. The company said undisclosed investors also purchased “large quantities of SNX” alongside Framework’s investment.
Synthetix also raised $30m through its initial coin offering in March 2018.