Andreessen Horowitz Sells Part of its Investment in MakerDAO’s MKR Governance Tokens
Venture capital heavyweight Andreessen Horowitz (a16z) has sold a portion of its investment in crypto lender MakerDAO’s MKR governance tokens. The sale came as the price of the tokens reached a near one-year high, prompting a surge in demand. The transactions took place via a freshly created wallet, which then deposited batches of tokens to crypto exchange Coinbase. So far, a total of $6.1 million worth of tokens has been deposited. The move to sell the tokens coincided with the activation of a new token buyback scheme, which reduces the supply of coins in the market. Despite a slight dip in value, MKR has since risen 10% to its current price of $1,140.
Key Points:
- Venture capital firm Andreessen Horowitz is selling part of its investment in MakerDAO’s MKR governance tokens
- $7 million worth of MKR was transferred from a16z’s wallet to a new address, which then began depositing tokens to Coinbase
- Sending tokens to an exchange typically indicates an intention to sell
- MKR’s price surged to a near one-year high of $1,200 following the activation of a token buyback scheme
- The sale comes as MakerDAO undergoes a major overhaul led by founder Rune Christensen
Hot Take:
The sale of MKR governance tokens by Andreessen Horowitz suggests that the venture capital firm is taking advantage of the tokens’ high price to secure profits. This action also aligns with the implementation of a token buyback scheme by MakerDAO, which aims to reduce coin supply. It will be interesting to see how this sale impacts the governance and future development of the lending platform.
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