DYDX Acquires Social Trading Platform Pocket Protecto

The acquisition deal is signed.

The acquisition of Protector Pocket is a strategic milestone that marks dYdX's transformation from a decentralized derivatives trading platform to a model that integrates social elements. Pocket Protector, founded in 2024, uses Telegram-based social trading technology, allowing users to discover trading ideas in real time and copy trades from top traders. It has a user base of 50,000 and an annual trading volume of over 100,000.

Pocket Protector's entire nine-person technical team, including co-founders Eddie Zhang and Kaiser Kinbote, joined dYdX, with Zhang serving as President and Kinbote as Head of Development. dYdX's technical capabilities have been enhanced with this move. Additionally, its core product, dYdX, has garnered over $1.5 trillion in trading volume since its launch in 2017. According to recent data, dYdX is now the fifth-ranked derivatives DEX in terms of total value locked (TVL), which could help the company improve its user experience and attract more retail traders who are looking for more accessible platforms.

The acquisition comes as dYdX faces increasingly fierce competition in the decentralized derivatives trading market. dYdX’s monthly trading volume has fallen 95% from a peak of $107 billion in October 2021 to $4.7 billion in June 2025, according to market data, due to the rise of rivals such as Hyperliquid ($215 billion in June volume) and GMX. This has forced dYdX to restructure internally, including laying off 35% of its staff in October 2024 and bringing the marketing and business development teams from the dYdX Foundation directly under dYdX Trading Inc.

The goal of the deal is to expand into social trading, a growing sector driven by the popularity of apps like Telegram in the crypto community. Pocket Protector, whose trading bot has proven its ability to attract 50,000 users in less than a year, is an ideal choice for dYdX to reposition itself in the market. Antonio Juliano, founder and CEO of dYdX, emphasized that bringing Zhang and Kinbote into leadership roles was strategic, leveraging Zhang’s experience from Meta and Kinbote in growing the crypto community to drive growth.

What is DYDX calculating?

The deal provides dYdX with several key benefits. First, the integration of Pocket Protector’s Telegram trading bot has helped dYdX improve the seamless trading experience for users, especially in markets with limited access to desktop platforms. This could help dYdX regain market share from centralized exchanges like Binance, which have built-in copy trading features.

Second, product execution and innovation will be enhanced by Pocket Protector’s leadership and engineering team, which includes Zhang, who has 10 years of product experience in the crypto space from Meta and Kinbote. As President, Zhang will be directly responsible for product strategy, while Kinbote will focus on user growth, two areas where dYdX has historically lagged behind its competitors. This is supported by recent hiring plans for research, engineering, and front-end development.

Ultimately, the deal will position dYdX in the 2025 wave of mergers and acquisitions (M&A) in the crypto industry, which will include major deals like Coinbase buying Deribit ($2.9 billion) and Kraken buying NinjaTrader ($1.5 billion). If the market reacts positively, the value of the DYDX token, currently trading around $0.68 with a market capitalization of $508 million, could rise.

Conclude

dYdX’s acquisition of Pocket Protector in its first external acquisition is a strategic move, reflecting the company’s efforts to expand into social trading to compete in the challenging DeFi market. With the addition of the Pocket Protector team and new features from the Telegram bot, dYdX has the opportunity to improve the user experience and regain its leadership position. However, the challenges of integration, cost, and competition require the company to act quickly and effectively. This event is not only a milestone for dYdX but also a signal that social trading is shaping the future of DeFi, ushering in a new era where technology and community intersect in the crypto industry.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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