Andreessen Horowitz Purchases 6% of the MakerDAO (MKR) Supply


Venture capital giant Andreessen Horowitz has made its next major cryptocurrency investment, investing $15 million in MakerDAO (MKR), the creator of stablecoin Dai (DAI).

According to an announcement by MakerDAO, 6% of the total supply of MKR was purchased for $15 million by a16z crypto, the venture firm’s new fund fully dedicated to investing in cryptocurrency and blockchain-related companies and direct investments in tokens. The investment was made at a roughly 25% discount to current market prices.

MakerDAO indicates that the injected capital will help fund operations for the next three years, which they note will be specifically focused on growing the ecosystem around MKR. However, the investment has raised questions regarding the decentralized governance structure of the project, as this capital was raised without any internal community approval process. Additionally, this latest sale might have established a precedent for secondary transactions to major strategic investors.

The investment was the first led by a16z general partner Katie Haun, who joined the firm earlier this year. Haun was a former federal prosecutor who led the task force on cryptocurrencies and even was in charge of the investigations into Mt. Gox and Silk Road. She currently serves on the Board of Directors of Coinbase, where she chairs its audit and risk committees.

“As a first mover and innovator in stablecoins, MakerDAO represents a very compelling opportunity in the crypto space,” said Katie Haun in a statement accompanying the announcement, “MakerDAO’s technology, ecosystem and talent have put theory into action to deliver a decentralized stablecoin that we believe will help drive the future of the crypto economy.”

a16z has previously made investments in stablecoins, including TrustToken and Basis, indicating that the firm is betting that these price-pegged digital currencies will play a significant role in the emerging industry.

More: a16z crypto purchases 6% of MKR, backing Stablecoin Vanguard MakerDAO

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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