Andreessen Horowitz-Backed Entropy Announces Shutdown

TheNewsCrypto2026-01-26 tarihinde yayınlandı2026-01-26 tarihinde güncellendi

Özet

Decentralized crypto custody startup Entropy, backed by Andreessen Horowitz (a16z), is shutting down and returning remaining capital to investors, according to founder and CEO Tux Pacific. After four years, multiple pivots, and two rounds of layoffs, Pacific announced the decision on January 25. The company had recently shifted to a crypto automation platform but failed to meet venture-scale growth expectations. Entropy raised $25 million in a 2022 seed round led by a16z crypto, with participation from Dragonfly Capital, Coinbase Ventures, and others. Initially offering a decentralized alternative to custody providers like Fireblocks, the startup ultimately could not achieve sustainable growth. Pacific expressed gratitude to investors and indicated a personal shift away from crypto towards pharmaceuticals.

A decentralised crypto custody startup supported by Andreessen Horowitz (a16z), Entropy is terminating and plans to return the rest of the capital to investors, as per the founder and CEO Tux Pacific.

Pacific publicised through writing on X on January 25 that, “I am winding up Entropy, and after four years, various pivots and two rounds of layoffs, I have decided to terminate Entropy and return capital to the investors.”

The termination is followed by a late-stage push last year to reposition the firm around a crypto automation platform, which Pacific referred to as “basically n8n/Zapier/etc. for crypto”, having automated signing through threshold cryptography, safe computation leveraging trusted execution environments, and deep AI amalgamations.

That product direction was still not able to clear a venture-style growth bar. After the first feedback request disclosed that the business model was not venture scale, Pacific said that he was left with the choice to navigate a creative way forward or pivot once more.

The Heartful Gratitude

Entropy first captivated attention in 2022 when it generated $25 million in a seed round headed by a16z crypto, and the participants were Dragonfly Capital, Coinbase Ventures, Robot Ventures, Ethereal Ventures, Variant and Inflection. Before this, the company had so far accumulated $1.95 million in a pre-seed round.

At rollout, Entropy pitched itself as a decentralised alternative to custody providers like Fireblocks and Coinbase, depending on cryptographic approaches such as multi-party computation to allow users to control how funds move, comprising rule-based constraints.

Pacific also showed gratitude towards a16z crypto and Guy Wuollet for aiding in steering the wind-down and called their guidance “invaluable”. Pacific has also mentioned that they plan to step back before deciding what comes after Entropy.

He added that my time in crypto might be coming to a conclusion, as I feel myself drawn mainly into pharmaceuticals, and they want to work on hormone delivery and validate research on new oestradiol drug formulations.

Highlighted Crypto News Today:

Las Vegas Businesses Use Bitcoin as a Mainstream Payment to Avoid High Credit Card Fees

İlgili Sorular

QWhat is Entropy and why is it shutting down?

AEntropy is a decentralized crypto custody startup backed by Andreessen Horowitz (a16z). It is shutting down because, after four years, multiple pivots, and two rounds of layoffs, its founder and CEO Tux Pacific decided to terminate the company as its latest product direction failed to meet venture-scale growth expectations.

QWho were the major investors in Entropy's seed funding round?

AEntropy's $25 million seed round in 2022 was led by a16z crypto, with participation from Dragonfly Capital, Coinbase Ventures, Robot Ventures, Ethereal Ventures, Variant, and Inflection.

QWhat was Entropy's final product pivot before shutting down?

AEntropy's final pivot was to reposition itself as a crypto automation platform, described by its CEO as 'basically n8n/Zapier/etc. for crypto', which featured automated signing through threshold cryptography, safe computation using trusted execution environments, and deep AI integrations.

QWhat did Entropy's founder, Tux Pacific, announce about his future plans?

ATux Pacific announced that he plans to step back before deciding his next move and expressed that his time in crypto might be concluding. He stated he is drawn to the pharmaceutical industry and wants to work on hormone delivery and validate research on new oestradiol drug formulations.

QHow did Entropy initially position itself in the market at its launch?

AAt its launch, Entropy positioned itself as a decentralized alternative to custody providers like Fireblocks and Coinbase, relying on cryptographic approaches such as multi-party computation to give users control over fund movements with rule-based constraints.

İlgili Okumalar

The Only True AI Token Is USDC

The article argues that the only true "AI token" is the stablecoin USDC (and others like USDT, USDS), not the various AI-themed altcoins promoted in crypto circles. It uses the example of "Felix," an AI agent that autonomously runs a company, generating revenue, paying expenses, and hiring other AI agents, all funded and transacted with stablecoins. The core thesis is that AI agents, which are software-based companies, cannot hold traditional bank accounts due to legal and regulatory barriers. Stablecoins in crypto wallets provide the essential financial infrastructure for these agents to operate independently—receiving payments, paying costs, and transacting without human intervention. The author dismisses the narrative that a specific "AI blockchain" will dominate, comparing public blockchains to utility providers (like UPS or FedEx) that AI agents will indifferently use based on cost and efficiency for each transaction. The real value capture is in the stablecoin layer and critical infrastructure like reputation and orchestration systems, not in speculative AI agent tokens, which have collectively lost significant market value. The article concludes that crypto was built for autonomous software, not humans, and that the massive, overlooked transaction volume of stablecoins is the true indicator of the AI agent economy's growth.

marsbit22 dk önce

marsbit22 dk önce

Ceasefire Drama Escalates—Trump Points Finger At Iran, Bitcoin In Focus

Iran's Foreign Ministry accused the U.S. of committing war crimes through an unlawful naval blockade, citing violations of the UN Charter and a 1974 resolution. President Trump, meanwhile, claimed Iran fired shots in the Strait of Hormuz, breaching the ceasefire. Both sides blamed each other for escalating tensions. Bitcoin reacted immediately, dropping from $76,250 to $75,400 amid the news, reflecting the market's sensitivity to the conflict. Earlier volatility occurred when Trump announced—and Iran denied—a nuclear deal suspension. The Strait of Hormuz remains a critical flashpoint, with markets closely monitoring whether negotiations will hold or collapse.

bitcoinist1 saat önce

Ceasefire Drama Escalates—Trump Points Finger At Iran, Bitcoin In Focus

bitcoinist1 saat önce

Geopolitical Risks Persist, Bitcoin Becomes a Key Barometer?

Amid escalating geopolitical tensions in the Middle East, particularly around Iran and the Strait of Hormuz, and a sudden injection of nearly $200 billion in liquidity by the Federal Reserve and the U.S. Treasury, financial markets are caught in a tug-of-war between liquidity-driven gains and risk-off sentiment. Bitcoin is emerging as a key indicator in this environment due to its high sensitivity to liquidity shifts. It has historically acted as a leading signal—declining ahead of equity downturns and recovering before broader markets. Currently, its ability to break above the $80,000–$85,000 resistance level will test whether recent liquidity injections can outweigh geopolitical uncertainties. Failure to do so may signal underlying weaknesses, potentially in private credit or fading liquidity impact. Other indicators show mixed signals: The CNN Fear & Greed Index reflects greed, volatility indices are relatively calm, and major equity indices like the S&P 500 and Nasdaq have hit new highs. However, the situation remains fragile, with Iran-related risks capable of swiftly reversing sentiment. The key question is whether liquidity or geopolitical risk will dominate market pricing in the near term.

marsbit1 saat önce

Geopolitical Risks Persist, Bitcoin Becomes a Key Barometer?

marsbit1 saat önce

2026 U.S. Stock Cryptocurrency Sector: Opportunities, Risks, and Allocation Framework

U.S. Crypto Investment Landscape in 2026: Summary Since the SEC's historic approval of Bitcoin spot ETFs in January 2024, the U.S. crypto investment sector has matured significantly. By 2026, investors have four primary channels: spot ETFs, crypto equities (miners and treasury companies), leveraged/inverse ETFs, and blockchain funds. A key trend is the rise of dedicated Ethereum treasury companies, exemplified by Bitmine Immersion Technologies (BMNR). Unlike Bitcoin treasuries, ETH treasuries can generate native yield through staking, creating a distinct business model. Bitcoin spot ETFs dominate with $86.9B in assets (as of March 30, 2026), led by BlackRock's IBIT. Ethereum ETFs, like BlackRock's ETHA, hold ~$18B. BMNR holds 4.8M ETH (~$10.8B), representing 3.98% of the supply, and generates ~$196M in annual staking revenue. The 2025 GENIUS Act established a federal stablecoin framework, and major banks are now permitted to offer crypto custody, signaling full regulatory acceptance. A suggested allocation framework (not advice) includes: Core (1-5% in IBIT/ETHA), Industry Beta (2-5% in BKCH/BLOK), Yield/Alpha (0.5-2% in BMNR/MSTR), and Tactical (leveraged products for short-term use only). Key risks include extreme volatility, ETH slashing risks, and the decay of leveraged products. Investors should consult a professional advisor.

marsbit1 saat önce

2026 U.S. Stock Cryptocurrency Sector: Opportunities, Risks, and Allocation Framework

marsbit1 saat önce

Anthropic's One Trillion vs. DeepSeek's 10 Billion

In April 2026, Anthropic's implied valuation briefly surpassed $1 trillion in secondary markets, despite its last official valuation being $380 billion. Its annualized revenue surged to $30 billion, largely driven by enterprise adoption of Claude Code. However, OpenAI accused Anthropic of inflating revenue by $80 billion through gross accounting. Anthropic is not expected to be profitable until 2027. Meanwhile, DeepSeek, after three years of rejecting external funding, announced its first fundraising round targeting a valuation over $10 billion. Founder Liang Wenfeng had prioritized independence and research over capital, citing chip shortages as a bigger constraint than funding. The move aims to address talent retention challenges and potential shifts toward commercialization. Both companies represent different AI philosophies: Anthropic’s closed-source, enterprise-focused model contrasts with DeepSeek’s open-source, research-driven approach. Each faces core challenges—Anthropic must justify its valuation with eventual profits, while DeepSeek must balance growth with its founding vision amid new investors.

marsbit1 saat önce

Anthropic's One Trillion vs. DeepSeek's 10 Billion

marsbit1 saat önce

İşlemler

Spot

Futures