Andreessen Horowitz, an American venture capital firm also called “a16z bet on crypto” is set to launch a second wave of crypto funding to raise $450 million primarily to be invested in the crypto industry.
Before a16z bet on crypto, the firm used to invest in crypto start-ups and unpopular crypto coins. The firm, since beginning operations in 2009, has also been an active player in the crypto space. Just last year, a16z started a school where crypto entrepreneurs are being trained.
However, as the firm seeks to raise $450 million to invest in the crypto space, it has coincided with the current COVID-19 pandemic, which has been very bad for the crypto world since it began to ravage. The virus increased fear in the crypto community no doubt as several crypto coins; Bitcoin, Ethererum, XRP, etc. plunged significantly in value since it was declared a global pandemic by the World Health Organization (WHO).
a16z bet on crypto, gamble to pay-off eventually
The a16z bet on crypto no doubt could be considered a gamble that could go either way like every other crypto investment as several crypto coin prices continue to dwindle, rising by the day and plunging by night.
However, now that crypto prices are not on a high, it remains the best season for long term investors to stake their capital on these digital assets. Referring also to the 2008 financial crisis, it eventually ended with a positive narrative for the stock market and global economy altogether.
Another boost for a16z is that in this season of its crypto bet, major events in the crypto world like Bitcoin halving to hold next month and Ethereum 2.0 launch, mostly associated with bull runs are around the corner. The $450 million investment gamble might just be on track.
In the same light, a16z bet on crypto cannot be termed wise considering the uncertainty of the global pandemic the world still battles as there are no assurances that the crypto space has experienced its all-time low.