axelar

of Interop Labs but it is not buying the AXL token or the Axelar Network. The news made the Axelar token drop by thirteen percent because the deal does not give any direct benefit to people who hold the token. The deal shows that in crypto mergers and acquisitions companies often care about the people and the technology more than the tokens themselves.
Interop Labs created the Axelar Network which is a system that allows different blockchains to talk to each other and move assets safely between them. The engineers and technology from Interop Labs will now join Circle. At the same time another group called Common Prefix will take on a bigger role in keeping the Axelar Network running and improving it.

Even though the technology behind Axelar is strong and useful the token holders do not gain anything from this deal. The token is not part of the purchase and there is no plan to give token holders a share of revenue or any influence over the assets that Circle is acquiring. Because of this investors sold the token quickly and its price went down.

This type of deal shows a difference between the success of a project and the success of its token. Just because a network is working well and the people who built it are being recognized it does not mean the token will go up in value. In this case Circle gets talented engineers and technology that can help its stablecoin and payment business. But people who own AXL do not get any direct reward from the sale.

Crypto mergers and acquisitions are becoming more common and many of them focus on teams and the technology that makes networks work. Companies may want to hire smart engineers or buy systems that help move money or data between networks. The tokens that belong to those networks are not always part of the deal. Token holders need to understand that their investment may not benefit even if the project itself grows stronger.

For Axelar the future of the network still looks active because Common Prefix will continue to support it. The system for moving assets across blockchains will keep running and may improve over time. But the price of AXL may stay separate from these developments because the Circle deal does not include it.
In simple terms this story shows that in crypto people are buying talent and tools more than tokens. Success for a network does not automatically mean success for its token. Investors need to watch closely how deals are structured and what is actually included. Mergers can make the technology stronger and give teams more resources but the tokens can sometimes lose value even when the network becomes better.
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