Andreessen Horowitz makes a huge bet by only trusting blockchain project 22036
News
Ashmita Dutta
Aug 30, 2018 at 5:30 PM

Andreessen Horowitz, a prominent venture capital firm in America has poured maximum capital in a blockchain project called Dfinity Foundation. The latter is a newly emerging start-up having a promising future of being the basis for the upcoming Internet. Dfinity, a project based on blockchain technology in a private token sale to the accredited investors have raised $103 million.

The final capital that has been raised by Dfinity Foundation is beyond $190 million. SV Angel, Multicoin Capital and Polychain Capital are the other firms that have provided support to the start-up. Andreessen Horowitz, however, has not disclosed the amount of capital it invested but has specified that Dfinity holds the top most position in its crypto fund which is of just two months. The gigantic venture capital firm has previously funded the project associating with Polychain.

This massive betting is an indication of the investors' interest to continue with their support to blockchain based projects disregarding the current year's price declination in the crypto market. One one hand, in July 2018 the venture capital investments and initial coin offerings have seen a sluggish pace and on the other hand, for blockchain firms the funding in 2018 has reached the mark of $16 billion. This is, indeed, a record in itself and doubles the total amount that has been raised in the entire last year.

The Telephonic Interview

In a telephonic interview, Andreessen Horowitz's general partner leading the cryptocurrency fund has stated that for the firm, the Foundation has been the primary reason for the massive investment. The staff members of Dfinity are engineers of Uber Technologies and Aplhabet Inc. and PhDs of Yale University. As per the statement of Dixon, with the rise in valuation of the tokens of Dfinity, the investors will be gaining.

The equity rather than digital tokens of Dfinity is mostly favoured by the venture investors in the current and the previous round. The president and also chief scientist of Dfinity, Dominic Williams in a telephonic interview has informed that at $4.18 the tokens have been sold. In an airdrop, tokens that amount to $35 million have been distributed without any cost to the community members. However, Williams have commented that the uncertain nature of the regulation restrained the start-up from doing an ICO.  He has commeneted, “Our ambition is for the network to hold the next generation of software and services.”

See also: Australia gears up to refurbish legal industry with blockchain; CSIRO, IBM support 

See also: OECD to organise international conference on blockchain next month 

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