Entropy Decides to Cease Operations
The decentralized custody startup Entropy has announced it will shut down and return remaining funds to investors. Founder and CEO Tux Pacific stated that after four years of operations, multiple pivots, and two rounds of layoffs, the company failed to identify a venture-capital-backed business model.
Funding and Evolution Journey
In June 2022, Entropy raised $25 million in seed funding led by a16z Crypto, bringing its total funding to around $27 million. Initially, Entropy aimed to be a decentralized alternative to centralized custodians like Fireblocks and Coinbase, but later pivoted to develop an automation platform for crypto assets.
Looking Ahead
While Entropy’s journey did not end in success, its efforts provided valuable insights for the industry. The convergence of decentralized technologies and crypto economies will continue to be a key area for innovation.