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A16z-Backed Entropy Shuts Down With Plan to Return Capital

Founder Tux Pacific cites feedback that the AI crypto automation model lacked venture-scale economics.

Overview

  • The four-year startup will wind up operations after several pivots and two rounds of layoffs.
  • The company raised a $25 million seed in 2022 from investors including Andreessen Horowitz, Coinbase Ventures, and Dragonfly Capital.
  • In the second half of 2025 Entropy built a decentralized, AI-integrated crypto automations platform intended as an alternative to tools like Zapier.
  • Pacific says investors will receive their funds back, with reports estimating roughly $25–$27 million to be returned.
  • Entropy’s closure comes during a wider 2025 pullback in Web3 projects, including shutdowns at Linear Finance and multiple blockchain games.