a16z-Backed Crypto Custody Startup Entropy to Wind Down Operations
Entropy, a decentralized crypto custody startup backed by Andreessen Horowitz (a16z), is shutting down and returning remaining capital to investors. Founder Tux Pacific announced the decision on X, citing four years of operations, multiple pivots, and two rounds of layoffs.
The company's late-stage pivot to a crypto automation platform—positioned as a Zapier-like tool for blockchain with AI integrations—failed to achieve venture-scale traction. Pacific noted the business model couldn't meet growth expectations after investor feedback.
Entropy had initially gained attention in 2022 for its threshold cryptography solutions before shifting focus to automation. The shutdown underscores the challenges of sustaining crypto infrastructure ventures amid shifting market demands.
