Select...
Synthetix Network Token
Loading...

The price Synthetix Network Token today is 4.00 USD, and the trading volume in 24 hours - 99,622,019 USD. The crypto asset has grown by 0% over the day. Currently, the coin’s market capitalization is 420,788,458 USD, and has 105,141,915 coins in circulation with the max supply of 695,658,161 coins SNX.

What is Synthetix (SNX)?

Synthetix is a software that allows users to create new crypto assets that mimic both real assets (such as the US dollar) and crypto assets (such as Bitcoin).

Synthetix is one of the emerging cryptocurrencies with decentralized financing (DeFi), which provides this service only with the help of code, without the need for a financial intermediary. Synthetix is rather just a set of smart contracts running on the Ethereum blockchain.

This means that Synthetix users do not need to trust a specific institution or person to manage the crypto assets they create. They only need to trust that its code will execute as written.

Synthetix can create these new assets using a process called provisioning.

To secure an asset on Synthetix, users must purchase its SNX cryptocurrency, which, once locked in a special contract, can be used to create these new assets, called synths.

For example, a synthesizer that simulates the value of the US dollar is called a sUSD. Another synthesizer that simulates the price of Bitcoin is called sBTC. However, synthesizers can be created for any asset, whether it is a commodity such as gold or silver, or a fiat currency such as the ruble, euro, or Korean won.

Synths can then track the value of other assets through special data channels called oracles, which allow users to learn about the gains and losses in these markets.

Who created Synthetix?

Founded by Kane Warwick, the Synthetix project began as a protocol called Havven, which in 2018 raised about $ 30 million by selling 60 million HAV tokens.

Havven's goal was to create cryptocurrencies that mimic the operation of fiat currencies, such as the US dollar or euro, on several blockchains, including Ethereum and EOS.

In late 2018, Havven renamed itself Synthetix, expanding its goals to include the creation of synthetic assets for cryptocurrencies and commodities. In 2019, Synthetix raised $ 3.9 million by selling SNX tokens to Framework Ventures.

Synthetix was originally run by a non-profit foundation, but it was dissolved in June 2020 and replaced by three decentralized autonomous organizations, or DAOs.

These DAOs are the mechanisms by which holders of the SNX cryptocurrency can now vote on changes to the protocol and make decisions about its future.

What is unique about Synthetix?

Synthetix uses two crypto-currencies to offer a service for the production of synthetic assets. The first is its own cryptocurrency, SNX. The latter are synthesizers that can mimic any asset.

To create synthesizers, the user must purchase SNX and bring it to the Synthetix platform. In turn, Synthetix creates a new synthesized token of the user's choice. In this case, the value of the blocked SNX must remain at the level of 750% or higher of the value of the created synthesizer in accordance with the software rules.

How many SNX tokens are in circulation?

Since SNX is a cryptocurrency, its value is determined by the open market. As a result, the number of synths that may be in circulation may change as the SNX price moves up or down.

For example, if the price of SNX increases, the system will issue SNX tokens that are not needed to guarantee previously created synthesizers. These SNX tokens can be locked again on the platform to create new synths.

As of January 2021, there were 114,841,533 SNX coins in circulation, with a maximum supply of 212,424,133 SNX coins.

Summary

  • To own your crypto assets, you need to manage your own private keys.
  • Ledger hardware wallets make private key management easy and secure.
  • Each unique 24-word recovery phrase creates a new set of private keys.
  • Make sure you secure your 24-word recovery phrase properly.
Loading...