Andressen Horowitz Invests $15 Million into Stablecoin Company MakerDAO

Andressen Horowitz Invests $15 Million into Stablecoin Company MakerDAO
ôîòî ïîêàçàíî ñ : cryptoslate.com

2018-9-26 22:53

As established venture capital funds look with intent at the lucrative cryptocurrency space, stablecoin startups are seemingly catching their attention as the investment avenue of choice after crypto-exchanges and wallets services.

A16Z Bullish on Stablecoins

On Sept. 24, Andreessen Horowitz announced a $15 million investment in cryptocurrency startup MakerDAO, which issues the Ethereum-based stablecoin Dai (DAI).

Popularly stylized as A16Z, the U.S.-based venture fund has invested millions in cryptocurrency and blockchain businesses. In April, they even held meetings with U.S. state authorities to call out excessive regulations for the cryptocurrency ecosystem–which “impairs” the development of technology.

DAI is part of MakerDAO’s decentralized credit system for enterprises and individuals, as explained in its whitepaper. The stablecoin is backed by the USD on a 1-1 basis but is collateralized by ether and operates fundamentally different to comparable projects like Tether (USDT).

Related: MakerDAO Launches New Dai Stablecoin on the Ethereum Blockchain

Instead of an offering backed by billions of dollars in offshore banking accounts, the DAI token is generated after users lock up excess ETH in a native smart contract. To access the collateral, users must pay back the DAI debt they earlier acquired.

The DAI protocol also introduces savvy measures like Target Rate Feedback Mechanism (TRFM) and Collateralized Debt Positions (CDP) to ensure the token maintains a value of $1 regardless of the fluctuating prices of ETH.

In case of a black swan event that severely drives down the price of ETH, the system is designed to unlock the “Global Settlements” function that credits all users with the initial amount of assets they invested.

MakerDAO’s ambitious solution led A16Z to purchase over 6 percent of all MKR tokens–which governs the DAI platform and is not a stablecoin–priced over $15 million at the time of purchase.

As stated on its announcement, A16Z will now be allowed to manage its MKR tokens to exercise voting rights and influence the Dai Credit System, ironically before the latter becomes the world’s “first” decentralized autonomous organization.

Beyond Funding

Apart from funds, MakerDAO shall be receiving operational support from A16Z, including facilitating future financing stages, community support for three years, and technical know-how from eighty A16Z consultants.

Rune Christensen, CEO and co-founder of MakerDAO, commented:

“With investment and operational support from a16z crypto, MakerDAO will be able to accelerate evolution, innovation, and adoption of the Dai Credit System.”

There’s no holding back from cryptocurrency investments for A16Z. The venture fund has led investment rounds in blockchain-based security platforms, stablecoin projects, and even partnered with other venture capital firms to invest in crypto-businesses.

Related: Institutional Giant A16Z Leads $102 Million Funding Round in Dfinity ‘World Computer’

The DAI investment comes on the heels of a $102 million funding round of Dfinity in August 2018, as reported by CryptoSlate. At the time, A16Z executives pointed out the company’s decentralized computing vision helps cuts out intermediate, monopolized servers, middleware, and costly cloud-based services, all while allowing the creation of open-source programs and dApps.

At the time of writing, DAI’s total market cap is valued at $55 million with a circulating supply of 54.9 million. Conversely, MKR is priced at $437 with a market cap of $311 million, making it the 29th largest cryptocurrency in the world.

The post Andressen Horowitz Invests $15 Million into Stablecoin Company MakerDAO appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Global Cryptocurrency (GCC) íà Currencies.ru

$ 0 (+0.00%)
Îáúåì 24H $0
Èçìåíåèÿ 24h: 0.00 %, 7d: 0.00 %
Cåãîäíÿ L: $0 - H: $0
Êàïèòàëèçàöèÿ $0 Rank 99999
Öåíà â ÷àñ íîâîñòè $ 0.0011527 (-100%)

stablecoin million makerdao horowitz investment invests cryptocurrency

stablecoin million → Ðåçóëüòàòîâ: 29


Ôîòî:

Renowned VC Firm Andreessen Horowitz Invests $15 Million In MakerDAO’s Stablecoin

Renowned venture capital firm Andreessen Horowitz has invested $15 million in MakerDAO’s stablecoin, the company recently revealed in a press statement. The VC firm, which is considered one of the most elite in the world, has become increasingly involved in the crypto industry in the past year having set up a $300 million blockchain fund […] The post Renowned VC Firm Andreessen Horowitz Invests $15 Million In MakerDAO’s Stablecoin appeared first on NullTX.

2018-9-26 02:00


Ôîòî:

Binance, Huobi, OKEx, and Dunamu Come Together for $32 Million Stablecoin Project

Binance, Huobi, OKEx and Dunamu (the company behind Korean crypto exchange Upbit) have announced plans to partner on a  $32 million stablecoin project called ‘Terra.’ According to an August 28, 2018 report in Fortune, the purpose of Terra is to get skeptical consumers into the crypto space by offering them a digital asset that does not suffer from the legendary...The post %%POSTLINK%% appeared first on %%BLOGLINK%%.

2018-8-30 21:00


Ôîòî:

Report: Tether Printing is Failing to Pump Bitcoin and the Crypto Market

Pumping the cryptocurrency market is proving to be a difficult task for “whales” and digital asset exchanges, researchers at Bloomberg believe. $500 Million USDT in August Alone As observed by the Bloomberg, over $500 million in controversial stablecoin Tether (USDT) has been “printed” throughout August, without a significant increase in Bitcoin’s (BTC) price.

2018-8-25 00:00


MakerDAO Announces Partnership With Tradeshift

MakerDAO, creator of the Dai stablecoin, announced its partnership with Tradeshift on July 6. Tradeshift, which provides supply chain payments and markets for more than 1.5 million companies in over 190 countries, will add payments through a decentralized marketplace using the Dai stablecoin to fund real-time small business loans. This partnership could help businesses gain […]

2018-7-8 16:00


Tether Prints 250 Million Tokens, Nearly Ousts Tron as 10th Largest Crypto

Popular stablecoin, USDT, pegged to the price of one U. S. dollar, has just granted another 250 million tokens, adding to the discussion surrounding this often controversial crypto asset. The Tether ‘Controversy’ Continues Despite its widespread use, Tether has been the topic of controversy within the cryptocurrency community, as users speculate about the legitimacy of the project.

2018-6-26 23:30


Asset tokenization platform TrustToken just raised $20 million in a strategic token sale with the help of major venture corporations, including ..

Asset tokenization platform TrustToken just raised $20 million in a strategic token sale with the help of major venture corporations, including Andreessen Horowitz (a16z). TrustToken has so far released one such token already – a “stablecoin” called TrueUSD, according to the release.

2018-6-18 16:37