Andreessen Horowitz Invests $15 Million in Stablecoin Firm MakerDAO

Andreessen Horowitz through its funding fund a16z has acquired 6 % of the overall MakerDAO token provide.

American enterprise capital fund Andreessen Horowitz has invested $15 million into blockchain startup MakerDAO (MKR), in accordance with an announcement revealed September 24.

MakerDAO is the agency which stands behind Ethereum-based stablecoin Dai (DAI) and its accompanying decentralized credit score system. DAI is pledged to U.S. {dollars} however collateralized by Ethereum (ETH). DAI customers can generate the secure coin by locking up an extra quantity of ETH in a smart contract, so if a consumer desires to entry their collateral, they need to pay again the DAI debt.

Per the announcement, Andreessen Horowitz through its funding fund a16z acquired 6 % of the overall MKR token provide. The buy will permit a16z to handle MKR and the Dai Credit System because it reportedly turns into “the primary” decentralized autonomous stablecoin group.

MKR may even obtain working capital by way of additional financing phases, three years of assist for the group, and operational assist from greater than eighty a16z workforce members. Rune Christensen, CEO and cofounder of MakerDAO, commented:

“With funding and operational assist from a16z crypto, MakerDAO will have the ability to speed up evolution, innovation, and adoption of the Dai Credit System.”

In August, Andreessen participated in a $100 million funding spherical of cloud computing startup DIFINITY. In February, Andreessen beforehand participated within the startup’s funding, contributing to a $61 million spherical. Having raised a complete of slightly below $200 million since its basis in 2015, DFINITY finally desires to create a platform which is able to “host the world’s subsequent technology of software program and providers on a public community.”

In July, blockchain cloud computing platform Oasis Labs introduced that it raised $45 million from main buyers as a part of its plan to assist corporations undertake blockchain. Oasis’ buyers included a16z together with cryptocurrency change Binance, Pantera Capital and Accel.

At press time, complete market capitalization of DAI is round $55 million, whereas the foreign money’s circulating provide is round 54.9 million, in accordance with knowledge from CoinMarketCap.

Original supply: https://cointelegraph.com/news/andreessen-horowitz-invests-15-million-in-stablecoin-firm-makerdao

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