Andreessen Horowitz’s A16z Crypto Fund Grabs 6% of MakerDAO MKR Token


Andreessen Horowitz’s, A16z’s Crypto Fund, Purchases 6 Percent of MakerDAO’s MKR Token

A16zcrypto has just gone ahead and announced it has bought six percent of the gross supply of MakerDAO’s proprietary token, MKR. The crypto arm of venture firm Andreessen Horowitz closed this lucrative deal at a price of $15 million. This means the MakerDAO team will be getting capital and operational assistance from a16z.

MKR Part of a16zcrypto Prospects

A16Z is a reputable VC firm that has in the past made bargains in Ripple, OpenBazaar, Coinbase, Airbnb, Skype, Medium, and many others. MakerDAO hosts a decentralized financial ecosystem, just made this cutting-edge step towards the mainstream, a move that received sound backing from the crypto fund a16z.

The strategic buy up was made possible by a16z’s General Partner Katie Haun. Katie holds a robust profile that saw her lead previously the U.S. Department of Justice investigations into both the Mt. Gox hacks and the federal government’s rogue Silk Road agents.

As a result of this purchase, a16z will officially be recognized as part of MakerDAO ecosystem governance structure. This is a move that initially kicked to fruition with the launch of the Dai Credit system.

Such a change is poised to transform the decentralized dream of MakerDAO team of propelling capital operations through this reputable VC firm. Consequently, a16z’s departmental activities will lend a hand to the stable coiners on technical and developmental support.

MakerDAO

A16zcrypto makes its mark once more with MKR move.

Katie Haun believes this move will make MakerDAO the dominant compelling force and opportunity in the crypto space. She says this is pegged to the fact that the firm is not only the first mover but also an innovator in Stablecoins. Also, more credit goes to MakerDAO’s technology, talent, and ecosystem that has practically made it possible to put the concept into deed. In consequence, this is considered core to driving the future growth of the crypto economic might.

For the Dai

The market today is awash with so many stable coins that provide a variety of models to consider. Though it’s bottom-line purpose rhymes with that of its nobles in the industry, Dai inherent nature is to give invaluable moderation necessary in the ever dynamic large valued fluctuations prevalent in the crypto economy.

For instance, to stabilize Dai’s value by MKR in a dual token model, the firm made an issue on the maker platform. In the process, it was able to use the “dynamic system” of collateralized debt points or CDPs through smart contracts via Ethereum cryptocurrency. The system makes it possible for Maker users to hedge ether to take out Dai, just like in the form of a self-credit.

Making interchanges: Maker’s strategy

MakerDAO merged with supply chains payment juggernaut Tradeshift, this is in July 2018 on a project aimed at unlocking liquidity access for small businesses worldwide. This initiative was to take effect using the $9T of capital stuck in all outstanding receivables.

Hence, the Dai Credit system establishes an active supply chain liquidity bazaar for businesses, investors, and developers according to the statements from the two firms at the time. Dai credit system will be steered by Tradeshift Cash which is an invoicing solution for micro-to-medium entities.

A Fresh Model?

Spencer Noon of DTC Capital just noted via Twitter that a16z and MakerDAO are poised to make a historical precedent in the fledgling cryptocurrency economy. The secondary transactions are considered to be fascinating and strategic to investors who want to gain traction and and looking to get pretty pennies; as anticipated by the VC firm in forthcoming comparable agreements.

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