Axelar Team Acquired, Token Abandoned: Circle's 'Take the Team, Not the Token' Move Sparks Heated Debate in Crypto Community
Circle, the stablecoin giant, has announced the acquisition of the core team and intellectual property of Interop Labs, the initial development team behind the cross-chain protocol Axelar Network. The move aims to advance Circle’s cross-chain infrastructure strategy and improve interoperability for its core products like Arc and CCTP. However, the acquisition explicitly excludes the Axelar Network itself, its foundation, and its native token AXL, which will continue to operate under community governance. Another contributing team, Common Prefix, will take over Interop Labs' former activities.
Following the news, the price of AXL dropped sharply, falling 15% to around $0.115. The “acquire-the-team-but-not-the-token” approach has sparked intense debate within the crypto community.
Critics, including VCs and industry figures, argue that the move unfairly disadvantages token holders, who supported the project early on but received nothing from the acquisition. Some have called it a “rug pull” and raised ethical and legal concerns, emphasizing the misalignment between team incentives and token holder interests.
Supporters counter that this reflects standard market reality where tokens sit at the bottom of the capital structure—below debt and equity—and aren’t inherently entitled to proceeds in acquisitions. They see Circle’s decision as a rational business move that follows conventional corporate finance hierarchies.
The incident highlights a recurring conflict in crypto: the ambiguous legal and economic status of tokens. While often treated as “quasi-equity” during bullish phases, tokens lack formal rights in events like acquisitions or liquidations. The Axelar situation underscores the need for clearer definitions and structures around token rights and incentives.
marsbit12/17 10:05
