The Syndicate token (SYND) fell to a new all-time low today after Andreessen Horowitz-backed Syndicate Labs announced its shutdown.
Market data showed that the token fell to $0.01061 after the announcement. At press time, it was trading at $0.012, down about 23% over the past day.
Why is Syndicate Labs closing?
The union in the beginning He started By building the infrastructure for decentralized autonomous organizations (DAOs). Company It raised $20 million in 2021 Series A round led by Andreessen Horowitz.
In X’s post, the team said that Its basically cumulative market I turned. He pointed out that the liquidation decision was necessary under these circumstances.
“Unfortunately, the market for assembled products has shrunk dramatically. For every new product that closes, many more are quietly shutting down. The market has shifted away from our technology, making it impossible to wait out these market conditions. EVM assembly processes are no longer the standard,” the post read.
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Syndicate Labs also clarified that its closure was not the case Related to last month Exploiting the Commons Bridge. according to certecThe attacker obtained approximately 18.5 million SYND tokens and sold them for approximately $330,000 before that. Plug funds into Ethereum.
The company added that all affected owners were fully compensated using treasury funds allocated for incidents of this type.
What happens to SYND and the wider network
The team stressed that the union operates as two separate entities. Syndicate Labs is handling development. Syndicate Network Collective, a decentralized non-profit association (DUNA) in Wyoming, holds the tokens SYND and Authority to rule.
The team said SYND’s management will not be affected in the near term. The group remains open to a successor who maintains the Donna district, and has prepared a structured downsizing plan should that not arise.
“Team members and investors remain locked out, with no affiliate individual able to access their allocation. We have structured our benefits to align with long-term incentives, and no team member or investor has received any short-term benefit,” Syndicate Labs said.
The team concluded by noting that its codebase will remain open source, permanently accessible, and available to contributors regardless of the future of Syndicate Labs or Syndicate Network Collective.
Whether a new, credible entity emerges in the coming weeks to manage DUNA will likely determine SYND’s long-term fate.
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this post SYND crashes to all-time low as Syndicate Labs announces pullback appeared first on BeInCrypto.
