Decentralized finance platform Synthetix has axed its $27 million plan to acquire crypto options platform Derive after negative community feedback.

A Synthetix spokesperson told Cointelegraph on May 22 that its acquisition proposal, pitched to its community and to Derive’s, “did not resonate,” and both projects agreed to “step back from the proposed acquisition.”

Synthetix said on May 14 that it would acquire Derive in a token exchange deal, pricing 1 SNX token to 27 DRV tokens, which would value Derive at around $27 million, pending approval from both communities. 

Synthetix strategy lead Ben Celermajer told Cointelegraph that other community concerns were the three-month token lock-up period and the deal’s price, part of which Synthetix tried to address with no lock-up for holders of less than 1 million DRV. 

“While we understand the commercials did not resonate with all community members, a number of holders from both communities believed the deal was fair and acceptable,” he said.  

“However, we acknowledge that the response fell short of expectations, and we have no intention of moving forward with something that was intended to be a collaborative and constructive endeavor.” 

Celermajer said Synthetix will continue evaluating opportunities for building a decentralized derivatives platform on the Ethereum mainnet.

Source: Synthetix

Derive community concerned on deal’s benefits

Derive community members expressed concerns over the deal on the project’s forum, particularly around the token exchange rate and the deal’s overall benefit to the platform.

Derive user “Ramjo” wrote on May 14 that the token exchange rate is “a poor reflection of the value of derive as a platform,” and the “equivalent of selling the bottom and locking in lows.” 

Related: Synthetix founder threatens SNX stakers with ‘the stick’ to fix SUSD depeg

Another user, “AlvaroHK,” called the deal “difficult to justify,” as they claimed that Derive generates more revenue than Synthetix, and there was no clause in the agreement to stop Synthetix from “printing millions of new tokens and keep diluting us.”

AlvaroHK claims Derive generates more revenue than Synthetix, which makes the deal a tall order to justify. Source: Derive

“I have found the guidance that Synthetix plans to issue an additional 170 million SNX to increase its supply to 500 million from 330 million,” AlvaroHK added in a follow-up post.

“Why this information is not disclosed when asked about it? It will dilute an additional 60% off the value of the offer made to Derive,” they added. 

Derive, which Synthetix started in 2021 as Lyra, operated as a decentralized options protocol but remained part of the Synthetix ecosystem.

It eventually rebranded to Derive and took steps to operate independently from Synthetix, such as moving away from using Synthetix’s sUSD stablecoin and liquidity.

Magazine: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets

Bitcoin has topped $110,000 for the first time in a recent rally that has seen it gain 3% over the past day to break through past price highs from earlier this year.

Bitcoin (BTC) hit a new all-time high of $110,788.98 on Coinbase late on May 21, just before 11:30 pm UTC, according to TradingView.

Bitcoin has gained around 3% over the last 24 hours, surpassing its all-time high of $109,458 that it hit earlier in the day, which was the first time it traded above its previously long-held Jan. 20 peak.

The world’s largest cryptocurrency has now gained 17.5% so far this year and is up 47% since its slump to $75,000 on April 7, triggered by US President Donald Trump enacting sweeping tariffs that tanked global markets.

Bitcoin’s new peak comes as US stock markets were rattled by a weak 20-year bond auction, which sent treasury yields soaring on May 21. The S&P 500 fell 80 points in half an hour while the Nasdaq and Dow Jones mirrored the move, with all US indexes trading down on the day. 

Bitcoin’s weekly chart shows it has climbed out of a slump earlier this year. Source: TradingView

Caroline Bowler, CEO of the Australian crypto exchange BTC Markets, said in a note to Cointelegraph that Bitcoin’s new high “reflects a mature interest in digital assets worldwide, not the speculative surge seen in past cycles.”

“Today’s demand is driven by institutional-grade infrastructure and stronger regulatory clarity. Investor sentiment has shifted decisively, reflecting institutional-style allocations,” she added. 

According to Google Trends, searches for Bitcoin have been trending down since November and are at lows typical of crypto bear markets, indicating a low retail interest in the cryptocurrency.

Meanwhile, the Crypto Fear & Greed Index, which tracks market sentiment, was at a score of 72 out of 100 on May 22, indicating “greed.” The index is down from its 2025 high of 84 on Jan. 22, which came two days after Trump’s inauguration.

Related: How high can Bitcoin price go?

Edward Carroll, head of global markets and corporate finance at MHC Digital Group, told Cointelegraph in a note that growing demand driving the price higher in the medium-term could push Bitcoin to at least $160,000 by the fourth quarter of this year and $1 million by 2030.

Trader’s leveraged Bitcoin bet tops $1.1B

Meanwhile, leverage trader James Wynn’s Bitcoin long position on the crypto platform Hyperliquidity has become the largest onchain margin trade when it exceeded $1.1 billion amid Bitcoin’s price peak. 

The entry point for the 40x leveraged position was $108,065 and it has an unrealized profit of $20 million. It will be liquidated if Bitcoin’s price falls to $103,800.

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Crypto influencer Anthony Pompliano’s fintech-focused blank-check company, ProCap Acquisition Corp (PCAPU), rose 7% on its debut Nasdaq listing after a last-minute upsizing of its initial public offering.

ProCap had boosted its IPO from $200 million to $220 million on May 20, a day before its public launch, pricing its 22 million shares on offer at $10 each.

ProCap shares closed the May 21 trading day up 7% at $10.70, which continued with a 1.6% bump after-hours to $10.87, Yahoo Finance data shows.

PCAPU’s share price closed up 7% on its debut trading day. Source: Yahoo Finance

The company has offered underwriters a 45-day option to buy up to 3.3 million additional shares at the IPO price to cover extra demand.

ProCap said in an April 30 regulatory filing that the firm will be a Special Purpose Acquisition Company (SPAC) that will look to invest in, and potentially take public, companies in the financial services, digital asset, asset management or healthcare sectors.

Pompliano is one of the crypto industry’s biggest cheerleaders, hosting a Bitcoin and finance-focused podcast and leading investment firm Professional Capital Management.

Pompliano told CNBC on May 21 that he had been itching to take a company public over the last five years but hadn’t seen enough demand in the private market until six months ago, citing recent changes to the US regulatory landscape affecting financial markets.

Related: Texas House passes strategic Bitcoin reserve bill

He hinted that his blank-check firm would invest in crypto-native and traditional finance businesses as he expects the sectors to converge in the coming years.

“The reason why I use the term financial services is basically the new digital world and the old incumbent world are all merging.”

SPACs haven’t been done right in the past, Pomp says

On CNBC, Pompliano was pressed on why he chose to make ProCap a SPAC, which have historically seen high failure rates due to sponsor conflicts, dilution, speculative valuations and regulatory scrutiny.

Pompliano said SPACs have gotten a bad reputation because companies often treat them like public venture capital, targeting high-growth companies that are losing a lot of money at high valuations.

Pompliano noted he has put “millions of dollars” of his own money on the line.

“We’ve got real skin in the game,” Pompliano said, adding: “I’m taking a huge reputation risk.”

Brent Saunders, CEO of health products firm Bausch + Lomb, also joined as a strategic adviser. Saunders completed over $300 billion worth of mergers and acquisitions over the last 17 years.

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