BlockBeats news: On January 26, according to The Block, Entropy, a decentralized custody startup backed by a16z, announced its closure and the return of remaining funds to investors.
Entropy's founder and CEO, Tux Pacific, stated that after four years of operations, multiple business pivots, and two rounds of layoffs, the company failed to find a business model scalable for venture capital investment. Following initial market feedback indicating that its business model lacked venture capital scalability, the company decided to cease operations.
It is reported that Entropy completed a $25 million seed round in June 2022, led by a16z crypto, bringing the total funding to approximately $27 million. Initially positioned as a decentralized alternative to centralized custodians like Fireblocks and Coinbase, the company later shifted its focus to developing a crypto automation platform.