dYdX Buys Pocket Protector to Add Social Trading, Expand Product Line

Decentralized exchange operator dYdX Trading Inc. has made its first external acquisition, purchasing social-trading platform Pocket Protector for an undisclosed amount. Pocket Protector’s Telegram-based application has attracted roughly 50,000 users and generated more than US$1 billion in annualized trading volume, according to the companies. Pocket Protector founder Eddie Zhang will become president of dYdX, while Kaiser Kinbote joins as head of growth, together with the startup’s four-person engineering team. dYdX said the deal will fold Pocket Protector’s social-first technology into its own platform as it broadens beyond perpetual futures into spot and other trading services. The move comes as dYdX seeks to scale after several years focused on building decentralized infrastructure for derivatives trading. Management said integrating Pocket Protector’s features and personnel will accelerate product rollout and user acquisition in an increasingly competitive market for crypto exchanges.