Andreessen Horowitz Supports Crypto Startup EigenLayer With $100 Million Investment
Andreessen Horowitz Helps Crypto Startup EigenLayer With $100 Million Investment
Venture Capital agency Andreessen Horowitz has invested $100 million in crypto restating startup EigenLayer after its most current funding round.
A original Bloomberg document shows the company backed the startup with a $100 million funding because it positive aspects recognition with its restaking model.
Venture agency Andreessen Horowitz invested $100 million in crypto startup EigenLayer, suggesting that a pair of of the industry’s prime backers are light making a guess on blockchain https://t.co/IphqmLd9br
— Bloomberg (@commerce) February 22, 2024
EigenLayer’s retaking intention permits Ethereum stakers to connect extra yield by providing safety to different initiatives with the identical ETH stake. Really, it’s a reuse of ETH stakes for multiple platforms on the community.
The platform has gained traction this year from digital asset customers and, extra only in the near previous, from institutions following this funding round. Sreeram Kanaan, a faded accomplice professor on the University of Washington and the founder of the company in a most current interview summarized the model of the company.
“The muse is that after you stake on Ethereum, you are promising that you’re going to toddle the Ethereum community nodes accurately,” Kannan said in an interview.
“With restaking, you are taking the identical Ether and making further guarantees that you would possibly per chance even validate different networks accurately.”
Kanaan revealed that the agreement will be disclosed on Thursday alongside side that the agency raised $50 million in March but did no longer utter the valuation of the company.
Parties Hail Protocol’s Utility
Though the company runs on a aspects machine for customers who restake constructing group integration, he added that there are in the intervening time no plans to begin a native EigenLayer token.
In an analogous vogue, Ali Yahya, a companion at Andreessen Horowitz, hailed EigenLayer’s importance in the market. In accordance to him, customers will hold rewards from staking belongings on original providers and products on EigenLayer.
“It will enable all sorts of most current sorts of purposes to be constructed. Folk will stake capital to hold rewards from original providers and products that accumulate spun up on prime of EigenLayer.”
Yahya added that even if there don’t appear to be any plans for an EigenLayer token yet, there will be different programs of monetization, alongside side a veteran commerce model. On rules, Kanaan suggests the model isn’t included in the Securities and Commerce Commission’s (SEC) staking regulatory scrutiny.
He pressured that the agency basically affords a market for customers taking a glimpse to restake, no longer the initial staking direction of that is under the regulator’s peek. Eventually, he added that the SEC, and namely Gary Gensler, would vastly like them if he understood what they’re constructing.
Andreessen Horowitz Switches Up Amid Rising VC Funding
Over the years, Andreessen Horowitz has been a first-rate investor in multiple crypto startups, elevating $4.5 billion in funding for companies in 2022.
A document by PitchBook shows VC investments in crypto startups grew 2.5% in Q4 2023, the first uptick since Q2 2022. In 2022, broader macroeconomic factors and industry-wide collapses ended in reduced investor sentiment, triggering lower asset prices.
This ended in reduced VC funding, weakened markets, and miner downturns, as most companies recorded losses.
However, the most current surge in the market on the heels of a area ETF approval by the SEC ended in elevated investor toddle for meals and extra undertaking funding.
Source : cryptonews.com
