What is Andreessen Horowitz crypto fund? Can it stop market crash?

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What is Andreessen Horowitz crypto fund? Can it stop market crash?

Andreessen Horowitz crypto fund
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Highlights

  • Through the funding, Andreessen Horowitz aims to invest in the virtual currencies behind projects and equity in a company.
  • Andreessen Horowitz was founded in 2009, and in the past few years, the private venture capital firm has gained prominence.
  • Andreessen Horowitz crypto fund has hit the headlines and gained traction from crypto market enthusiasts.

As the cryptocurrency market continues to decline rapidly, the United States-based venture capital firm Andreessen Horowitz announced a new fund for backing crypto and blockchain companies.

The move comes amid a bleak outlook for crypto markets due to their rapid decline over the past few weeks. Andreessen Horowitz is looking to pump money into Web3 and has kept a new fund worth US$ 4.5 billion, bringing the total raised money for blockchain and crypto investments to US$ 7.6 billion.

Through the funding, Andreessen Horowitz aims to invest in the virtual currencies behind projects and equity in a company. The funding has gained the attention of the crypto market enthusiasts as it comes at the time of the crash.

When Andreessen announced its first crypto-based funding four years ago, it had also come during a turbulent period in the crypto market.

All you must know about Andreessen Horowitz crypto fund

According to the official website, the Andreessen Horowitz crypto fund will be used to support promising Web3 startups. The venture capital firm is focused on developments in Web3 games and decentralized finance (DeFi) infrastructure.

The crypto market is witnessing a bearish sentiment, and some investors consider bear markets an opportunity to invest. Andreessen Horowitz could have announced the funding probably due to this reason.

Also Read: What is LockPay and is it a pump and dump scheme?

The virtual currencies are trading at low prices after declining massively, and Bitcoin is down over 50% compared to its peak in November 2021. The recent crash of the Terra stablecoin has also shaken investor sentiment.

Since 2022, crypto markets have remained extremely volatile due to various macroeconomic factors like the Russia and Ukraine war.

Andreessen Horowitz crypto fund

Bottom line

Andreessen Horowitz was founded in 2009, and in the past few years, the private venture capital firm has gained prominence and is known for its early bets on companies like Slack and Pinterest.

The venture capital firm has also invested in several crypto-based and blockchain-based startups like Alchemy, OpenSea, Yuga Labs, and Solana.

Andreessen Horowitz crypto fund has hit the headlines. It has gained traction among crypto market enthusiasts, but it is difficult to predict if it will positively impact the crypto market crash.

As of writing, the global crypto market cap had decreased by around four per cent to US$ 1.22 trillion.

Also Read: What is AgeOfGods (AOG) crypto and why its volume soared 1200%?

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