Polygon's multiple founders leave the project

67
3
Polygon's multiple founders leave the project

Jaynti Kanani, co-founder of polygon, said on Tuesday that he has been away from daily work on the project for the past six months, having moved on to 'new adventures' after helping launch it in 2017 and began a blog on the project.

But Kanani, the third of 10 co-founders of Polygon, said he was not ready to leave the company this year. And in the crypto industry-despite it's not unique to digital finance-multiple executive departures can be a sign of trouble.

Sam Trabucco, former CEO of Alameda Research, resigned in August, three months before FTX's calamitous collapse. Matteo Liebowitz, the venture lead for Uniswap Labs, announced his departure last week, amid speculation that despite its recent court win, the project isn't faring well while under SEC investigation. In the middle of backlash, Jesse Powell, CEO and founder of Kraken, stepped down in the middle of backlash over his anti-woke sentiments and the company paying the SEC a $30 million settlement. And much has been made about the pace at which Binance and Binance US execs have headed for exits since the crypto exchange landed in the SEC's crosshairs.

To be fair, it's entirely possible that all of the departing founders had a different idea of what they were working on at the same time. But it's also true that it's been a punishing year for Polygon.

Polygon Labs has not responded to Decrypt's request for comment.

The polygon layer-2 scaling solution for Ethereum is a multi-chain ecosystem that enables cheaper, faster, and more private transactions. MATIC, which has a market cap of $5.2 billion, is the thirteenth-largest cryptocurrency by market cap, according to CoinGecko.

Kanani, who co-founded Polygon's ten co-founders, co-authored the polygon whitepaper itself, alongside Anurag Arjun, Mihailo Bjelic, and chairman Sandeep Nailwal, among other co-founders.

In March, Arjun, co-founder of Avail, left the company to pursue a modular blockchain spinoff project, known as Avail. The president of Polygon Labs was replaced by Marc Boiron, the former chief legal officer of the company.

MATIC has dropped 80% to just $0.56 from $2.92 since its all-time high in December 2021. While appearless bleak, rival coins- including Cardano, Solana, Polkadot and Avalanche - have each fallen more than 90% from their respective peaks this year, according to CoinGecko.

The fourth-highest total value locked at $794 million compared to other networks, Polygon remains ahead of most competitors in decentralized finance. Arbitrum, one of its competitors in the space of Ethereum scaling, stands ahead of it with $1.7 billion TVL.

TVL refers to the value of digital assets currently on a blockchain and has been the most important metric for investors to gauge the health of DeFi ecosystems.

Although on-chain metrics appear healthy, Polkadot's regulatory situation may not be.

The SEC ruled on Monday that MATIC was among a number of tokens it deemed to be unregistered securities listed by the exchange. ADA and SOL were among the others swept up in the controversy. Polygon Labs dismissed the allegations by the SEC, noting that it had distributed MATIC to non-US investors.

The company is now preparing to transition to polygon 2.0, an interconnected network of layer-2 chains powered by zero-knowledge technology.