Crypto Analyst Gives Six Reasons to Buy Synthetix ($SNX)
On Monday (August 8), a very popular cryptoanalyst and influencer gave his reasons for recently buying “a bag” of $SNX, the native security of derivatives liquidity protocol Synthetix.
Here is how the Binance Academy describes Synthetix:
“Synthetix is a synthetic asset protocol that allows the issuance of synthetic assets on Ethereum. You can think of a synthetic asset as a kind of derivative product. It gives you a way to gain exposure to an asset without having to own it. But what can be a synthetic asset, or “Synth”? Well, almost anything that has a reliable price feed. Some examples are cryptocurrencies like BTC or ETH, commodities like gold and silver, and fiat currencies like USD. Even inverse synths exist that track the inverse of the underlying asset, giving traders an easy way to gain short exposure or hedge existing holdings and provide farming positions…
“The idea is that by using Synthetix, traders can gain exposure to certain assets that do not exist on-chain. Synthetix also allows the creation of indices such as the DeFi Index, which tracks the price of a basket of several DeFi assets…
“Synthetix works with over-collateralisation – that is, each synthetic asset is secured with more value than it represents. Synths are created by users staking a security (SNX) and placing a synthetic asset against it. In other words, each Synth is essentially a liability against the security posted.“
Earlier today, Lark Davis tweeted about why he is bullish on $SNX:
Another cryptoanalyst apparently positive on $SNX is “The Crypto Dog,” who had this to say about it on August 6:
Kain Warwick, the founder of Synthetix, published a blog post on August 4, providing his semi-annual Synthetix outlook.
Warwick stated that there are currently four pillars of Synthetix development:
- V2x: “The current system, aka, the never-ending story“
- Perps V2: “Upgraded perpetual futures, aka, let’s pretend V1 never happened“
- V3: “The completely rebuilt system, aka, the solution to the world’s problems“
- V3GM: “The new Synthetix management module, aka, thanks for nothing Aragon“
Regarding Synthetix V2x he said:
“Right now my life’s goal is to shut down development on V2x so we can focus on V3, I’ve been unsuccessfully spearheading this initiative since mid-2021. For some reason the community keeps coming up with major improvements to V2x 🤦. Of course they do! That is the whole reason why we want to close the case. It is now a Rube Goldberg machine, more duct tape than solidity. I’ve been told that the community can expect backlash from the CCs for additional non-critical SIPs, I’ll believe it when I see it.“
Regarding the Synthetix V3, he had this to say:
“… The SIPs detailing the changes are already being rolled out and presented to the Synthetix community. So far even some of the controversial changes I expected to cause problems have been accepted pretty well by everyone… I am luckily in the enviable position of not being able/willing to retire until Synthetix is sustainable and therefore the last the dinosaur who defends the legacy decisions of the Synthetix community, wish me luck…
“The point of this post is to give an overview of the status, and right now progress on V3 continues despite the distractions of maintaining V2x. Only a masochist would give timelines in crypto, but it looks like V3 could launch this year. But this is highly dependent on freezing the scope of V2x. Unfortunately, much of this progress comes at the expense of the last pillar.“
Image credit
Featured image via Synthetix
