Is This the End for AXL Token Holders? Axelar Without Its Creators

The Circle-Axelar deal is the talk of the town in crypto right now. Projects, founders, and investors have shared different perspectives on the matter. But, who’s truly the biggest winner, and who’s the vanquished here? Let’s find out

Background of the Axelar Deal

On December 14th, Circle, the company behind the USDC stablecoin, announced the purchase of the core team and IP of Interop Labs, the guys behind the Axelar Network. While this was smart business for Circle, the details of the deal were unfavorable for some within the Axelar Network. 

Why? Circle’s acquisition left out three core parts of the project:

• The Axelar Network itself
• The Axelar Foundation
• The AXL token, Axelar’s native token

So, in essence, Circle only wanted the brain, not the body. They wanted the team behind Axelar and the token, but wanted nothing to do with the project, the token, and the foundation. Was this cruel or smart business? 

In all honesty, this was Circle simply looking out for its best interest, which is what business is about. The deal is part of Circle’s effort to boost its cross-chain ambitions, especially CCTP and the Arc blockchain. This works for Circle because: 

• They acquired a smart team without taking on token obligations
• Their cross-chain plans get to advance 

The Interop Labs team also won big here:

• They probably secured good financial packages and good roles at Circle
• They no longer have to worry about token failure or project collapse.
  

After announcing their exit, Interlop said Common Prefix will now run the Axelar Network and continue everything they left behind. Common Prefix is a team of researchers building solutions for Axelar and other decentralized projects. So, they are already familiar with Axelar. The new team even shared a roadmap for 2026, showing how prepared they are. 

But, crypto Twitter isn’t satisfied. Investors, those who believed in Axelar when it had no liquidity and desperately needed some, feel left behind. Investors feel like this was a stab in the back, a Judas-like deal, another rug, and another question about true decentralization. 

Do AXL token holders have any reason to feel betrayed? And why? 

Why AXL Holders Feel Screwed

For AXL holders, the deal left a bad taste in their mouths. Here’s why they feel cheated:

Tokens are not equity

Since tokens are not equity, holders have no claim to team exits or IP sales. They simply have no part in the deal. Being a token holder means you bought into their vision early enough, believing the team will grow enough to become lucrative and see the token become valuable, which is where token holders make their money. It’s like their faith in the project paid off. 

But $AXL hasn’t been performing strongly lately. The token has been down 37% in the last 30 days, according to CoinMarketCap data. AXL’s all-time high of $2.66 came in March 2024, and the token has shed 96% of that gain since then. 

With the brain behind the project gone, holders feel cheated. Everyone is asking, “Who’s going to push this token back up?” In essence, the token feels stranded with the team gone. 

Here’s where things went south. AXL took a heavy hit shortly after the Axelar-Circle deal was announced. Market sentiment collapsed, and social media activity wasn’t favorable for the project. 

Token holders simply feel Interop Labs abandoned their words, leaving them a profitless token. For some community members, this acquisition confirmed fears that Axelar was already dead. 

Those who bought tokens expecting long-term growth tied to the founding team are now at the mercy of a new leadership team and market perception. Without the original team, the upside feels speculative at best.

Is This the End?

With all that’s happening, is this the end for Axelar? Well, the truth is, Common Prefix has a lot to do in stabilizing this ship. First, they have to convince the community to their side, because trust feels broken.

However, to their credit, they shared a smart plan for the coming year: 

• They promise continuity: block production, secure network operations, cross-chain integrations, gasless bridging, and institutional adoption focus.
• Plans for 2026 include stronger security guarantees, co-staking beyond AXL, and more robust infrastructure.
  

But, would these be enough? Skepticism around Axelar is pretty huge right now, and for several reasons:

• Community morale is low: many believe that without the original builders, Axelar can’t deliver its vision.
• Price action reflects this uncertainty; “AXL may now be worthless” is a sentiment echoed by multiple investors.
• Axelar has turned off comments on key updates, signaling a lack of open discussion or accountability for the token community.
  

Possible future scenarios

What can play out from all this? Here are the two possible outcomes:

• Best-case: Common Prefix successfully scales Axelar, revives adoption, and gradually restores some token value.
• Likely outcome: Token value remains depressed; the narrative of “community governance” cannot fully replace the credibility and expertise of the original team.

Here are the core takeaways from all these:

• Tokens aren’t equity: This is the harsh reality exposed by Circle’s acquisition. Investors who think token ownership automatically entitles them to exit value are often disappointed.
• Talent drives value: Circle didn’t buy the token; they bought the people. In crypto, the team often matters more than the network token itself.
• Market reaction is the clearest vote: Price drops and frustration reveal that investors feel ignored and excluded from real value creation.
• The narrative matters: No matter how strong Common Prefix’s roadmap is, token holders feel abandoned, which may influence adoption, staking, and participation.

AXL token holders face a stark truth: the team that made the project valuable is gone, and the network’s survival is now in the hands of a new team. The question isn’t just technical continuity. Instead, it’s whether the token itself can ever recover value when the original creators are gone.

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