Axelar’s AXL token plunged after Circle bought the network’s core developer team and IP — but left the token and network out of the deal. According to CoinDesk market data, AXL slid as much as 13% on Tuesday after stablecoin issuer Circle announced it had signed an agreement to acquire Interop Labs, the initial and primary developer behind the Axelar Network. The transaction transfers Interop Labs’ engineers and proprietary intellectual property to Circle, while explicitly excluding the AXL token and the Axelar network itself. Key facts - Buyer: Circle acquired Interop Labs’ team and IP. - Exclusions: The AXL token and the Axelar network were not part of the deal. - Continuity: Common Prefix, another long-time contributor, is slated to step up and take a larger role in maintaining and developing the Axelar ecosystem. - Market move: Traders sold AXL after investors realized the acquisition does not directly create value accrual for tokenholders. Why markets sold Circle’s move underscores a growing trend in crypto M&A: buyers are often buying teams, code and enterprise-ready infrastructure — not the native tokens of open protocols. For AXL holders, the purchase creates no immediate buy pressure, revenue-sharing arrangement, or governance link to the assets Circle just acquired. In short, the deal validates Axelar’s interoperability technology and brings engineering talent into Circle’s fold, but it doesn’t transfer economic upside to AXL. What this means for Axelar and tokenholders - Circle likely gains engineers and interoperability expertise that could help its stablecoin and payments ambitions. - Axelar’s technology may remain intact, but the network’s stewardship and future development pathway will now lean more heavily on Common Prefix and the wider community. - Tokenholders will be watching for concrete signs of how the Axelar ecosystem plans to preserve value for AXL — for example, governance decisions, tokenomics adjustments, or partnerships that channel economic benefits back to the token. Bigger picture The episode highlights a blunt lesson for crypto markets: protocol success and technical wins don’t automatically translate into token price gains unless the token is structurally tied to the value being monetized. M&A can strengthen teams and infrastructure — and still leave associated tokens on the sidelines. Read more AI-generated news on: undefined/news