Venture capital heavyweight Andreessen Horowitz (a16z) is selling a part of its investment in crypto lender MakerDAO's MKR governance tokens as the price of coins soared to a near one-year high, blockchain data shows.
Venture capital firm A 16 Z unloads $7 million of MKR tokens or the maker token as the price stores. This is according to Blockchain analytics, essentially looking at the wallets are known by a 16 Z to hold MKR tokens, they're transferred to a fresh address and then move forward coin base with the presumed selling of those tokens on coin base. Of course, once those tokens are on coin based, we don't have a look inside the actual engine itself, but you can assume that when people do move tokens onto an exchange, you're likely going to sell them as opposed to just hold them there. Uh Of course, a 16 and has been a longtime proponent and holder of MKR. Uh they purchased these tokens as far back as 2018. Why are they selling these tokens? Well, it really comes down to a new proposal uh by maker's Christensen talking about the end game for Maker Doo. Can it be further decentralized or not? He proposed an idea to further decentralize Maker Dou by spinning up even more daws to control different aspects and elements within the largest decentralized table coin machine maker Dow and as didn't really like it. So it looks like they're taking their bag just going to sell it right when the price is not doing too shabby at all. Danny. Yeah. Uh I got to say as someone who covers dow often a dow being on top of other sub dos, it's a thing that exists. It's just uh the these extrapolations and these complexities just make things harder to accomplish in crypto because crypto governance is really difficult. And I can't blame a six Z for hearing something like that and thinking, well, maybe it's time that we sell the local top uh move on because it's if, if you're seeing the market rally and you have an opportunity to upload your position. Well, from a fiduciary, from a fiduciary uh perspective, it might be the right thing to do. So, a 16 Z here. Uh They've uploaded 7 million I saw on chain that they had sent 0.5 makers to another new wallet recently. And that might be a signal that they're getting need to move some more because there are those little test transactions. I have to say, I remember back from when I first got into Bitcoin. If you don't want to send the whole Bitcoin at once, you don't want to send the whole the whole token position at once because you're not so sure you have the address, right. The first thing you do is you send a little bit as a little test just to make sure you have the numbers correct. So A six C has done that again. There might be more movements uh coming Jen, I'll toss it over to you. Yeah. No, I agree with both of you. There was some tension there um when this end game plan was published and A 16 Z said that the dow was adequately decentralized, but in some way, A 16 Z to me selling these tokens makes the dow even more decentralized, right? They, they have less tokens, that means they have less say in, in some of these votes moving forward. And I have to note that A 16 Z said the reason why they didn't support these ows was largely because of regulatory concerns, you know, having regulators understand what's going on, I think. Um and this is not what they said. This is now me thinking based on those comments, I think that you, you have a, do you have regulators trying to understand what's going on with, with Dow? How do they regulate it? How do we oversee these ecosystems that have their own tokens and, and tokens? And now you introduce sub and it just kind of further complicates things when we're in a very complicated time in our history. So I think that this makes sense, Danny. Um to your point, they may be selling off the rest of their tokens, but I believe that they still have just under 2% left. So we'll have to wait and see what happens with those.