The venture capital firm said that it views the crypto-market slump, months after it created a $4.5 million crypto fund. Chris Dixon, founder of Andreessen Horowitz (a16z), said that Web3 and cryptocurrency are seen by the venture capital firm as having the potential to disrupt the power imbalance created in large internet companies like Facebook and Twitter.
Dixon stated that the power to control the internet is currently held in a very small number of companies in an interview on FT’s Tech Tonic podcast.
Dixon stated that Dixon doesn’t believe this is a good outcome. “The idea that the internet could be controlled by five companies is bad for entrepreneurs as well as bad for VCs.
A16z has raised over \$7.6 billion since the launch of its crypto arm in 2018. This money was used to invest in blockchain and crypto companies. This includes the fourth cryptocurrency fund, which was established in May with $4.5 million even though the market crashed. Bitcoin’s value has dropped from its record high of $69,000 in November to $17,000 in June.
Dixon stated that he sees the slide as an opportunity to make more investments. In venture capital you’re hoping to buy low and sell high… so my experience with downturns has been that they have been opportunities.”
Many of the most prominent names in traditional finance are now using blockchain technology daily. Depository Trust & Clearing Corp., which processes all trades on the U.S. stock exchange, announced Monday that it was handling hundreds and thousands of settlement transactions per day via its Project Ion blockchain. French bank BNP paribas uses JP Morgan’s Onyx blockchain network.
Dixon stated that blockchain technology provides security by incorporating code rules into smart contracts.
“We can create better internet by creating new systems that allow the network effects to accrue to the community and not to the companies.