Circle Acquires Interop Labs Team and IP, Axelar Token Declines
Circle is set to acquire the engineering team and intellectual property of Interop Labs, the developer behind the Axelar Network, excluding the AXL token and the network itself from the agreement. As a result, Interop Labs' engineers and IP will join Circle, while Common Prefix will assume a larger role in maintaining and developing the Axelar ecosystem.
Following the announcement, the AXL token fell by as much as 13%, reflecting investor concerns since the acquisition does not directly benefit tokenholders. The deal does not provide buy pressure, revenue sharing, or governance rights to AXL holders regarding the acquired assets.
This transaction highlights a growing trend in cryptocurrency mergers and acquisitions where the value is placed on teams and underlying technology rather than tokens. Subsequently, token prices may not gain from the protocol's success.
For Circle, the acquisition brings engineering talent and interoperability expertise which is expected to bolster its broader stablecoin and payments ambitions.
