- Circle acquired Interop Labs, the developer of the crypto bridge Axelar, excluding the Axelar network and its $120 million AXL token.
- Investors reacted negatively, expressing frustration about the deal and the future of the AXL token.
- Axelar’s token price surged before the announcement but dropped sharply once the deal details were clear.
- The acquisition reflects tensions between token holders of decentralized projects and the profit motives of developing firms.
- Axelar has faced slow adoption and declining token value, losing about 95% of its value over the past 18 months.
Circle, a major stablecoin issuer, completed the acquisition of Interop Labs, the team behind the crypto bridge Axelar, on Monday. However, the deal excludes the decentralized Axelar network and the $120 million AXL token that powers it. This caused significant dissatisfaction among AXL token investors, who had expected Interop Labs to remain involved in Axelar’s development. Many voiced their frustrations publicly, with Simon Dedic, founder of Moonrock Capital, calling the move “outright criminal”* on social media.
Prior to the acquisition announcement, Axelar’s AXL token experienced a 45% price increase. When investors learned that the token and the network were not part of the sale, the price retraced all gains and fell sharply. The acquisition highlights challenges in aligning the interests of blockchain token holders with those of the for-profit entities that develop these projects.
This situation is part of a broader pattern in decentralized finance (DeFi), as seen in recent conflicts between Aave DAO members and the for-profit Aave Labs firm over revenue sharing. Axelar, launched in 2020, is a decentralized crypto bridge enabling cross-chain token transfers and information sharing. Since inception, it has raised nearly $94 million in venture capital, including $50 million through an initial coin offering (ICO) in 2022.
Despite the recent acquisition, some industry voices consider such deals standard. Avichal Garg, co-founder of Electric Capital, described the move as typical behavior for startups aiming to retain future value by the founding team. Electric Capital itself participated in a $30 million strategic token sale by the Axelar Foundation in March 2025, though Axelar is not listed officially among its investments.
Before the acquisition, Axelar’s performance was already struggling. Once valued at almost $1.4 billion in March 2024, the project has dealt with slow user adoption, early investor profit-taking, and weak value growth. The AXL token has lost about 95% of its value over the last 18 months and is currently trading just above its all-time low.
Tim Craig is based in Edinburgh and specializes in DeFi coverage. Contact at tim@dlnews.com.
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