Circle hires Axelar engineers and IP, excluding AXL — token tumbles
Circle has acquired Interop Labs’ engineering team and proprietary IP—the core developers behind Axelar Network—while explicitly excluding the AXL token and the Axelar network from the deal. Interop Labs’ engineers and technology will join Circle to bolster its multichain and payments initiatives (including Arc and CCTP). Longtime contributors Common Prefix will expand their role to maintain and develop the Axelar open‑source network and ecosystem. Markets reacted sharply: AXL fell as much as ~13% after the announcement as traders sold the token because the deal provides no direct value transfer, revenue sharing, buy pressure, or governance rights to AXL holders. The transaction underscores a growing crypto M&A pattern of acquiring teams and technology rather than tokens or networks—meaning team exits may not support token prices. Key implications for traders: AXL faces immediate selling pressure and heightened volatility; network continuity is maintained by Common Prefix and the Axelar community, limiting protocol risk but not restoring token value from the sale; traders should watch liquidity, order-book depth, and social/governance updates for any shifts in sentiment or on‑chain activity.
Bearish
The news is likely bearish for AXL in both the short and medium term. Short-term impact: the market reacted immediately with significant selling (reported ~13% drop) because the acquisition moves the engineering talent and IP off the project without transferring tangible economic benefits to token holders (no revenue share, buybacks, or governance rights). That creates immediate downward pressure, higher volatility, and potential liquidity gaps as traders reprice risk. Medium-term impact: while Common Prefix and the Axelar community will continue running the open‑source network—mitigating protocol risk—the absence of the original team within the Axelar ecosystem reduces perceived future value capture for the token. The sale signals that the most valuable assets were the team and IP rather than the token, which historically leads markets to discount native tokens when builders depart. Traders should monitor on‑chain metrics (volume, active addresses, staking/locking if relevant), order‑book depth, and any community or governance moves that could restore token utility or introduce revenue channels. Unless Circle or the community later announces mechanisms that create direct economic benefits for AXL holders, the baseline expectation is continued downward pressure or muted recovery.