a16z Cashes Out $7M of MKR Tokens as Price Soars

• Andreessen Horowitz (a16z) is selling a part of its investment in MakerDAO’s MKR governance tokens as prices surge to near one-year high.
• The venture capital firm purchased 6% of MKR’s supply for $15 million in September 2018.
• MakerDAO is currently undergoing a major overhaul spearheaded by founder Rune Christensen, called the Endgame Plan.

Venture Capital Firm a16z Unloads $7M of MKR Tokens

Lending platform Maker’s governance tokens soared to near one-year high prices last week prior to the sales by venture capital heavyweight Andreessen Horowitz (a16z). The firm transferred $7 million of MKR from their crypto wallet to a freshly created address on Thursday.

Price Soars Ahead of Sales

The new wallet then began depositing batches of 1,380 tokens – worth roughly $1.5 million – per day to crypto exchange Coinbase, signaling intention to sell. Up through Tuesday, deposits from that wallet to Coinbase totaled $6.1 million, with the latest transaction occurring at Tuesday 14:18 UTC.

Background Information

MakerDAO is one of the largest decentralized finance (DeFi) lending platforms and the issuer of the $4.6 billion stablecoin DAI . The platform is managed by a decentralized autonomous organization (DAO), where MKR token holders – including a16z – can vote on governance proposals.

A16z Investment

A16z was one of the largest investors in MakerDAO, purchasing 6% of MKR’s supply for $15 million in September 2018.

Endgame Plan

The protocol is currently undergoing a major overhaul spearheaded by founder Rune Christensen called the Endgame Plan which includes breaking up the protocol’s units into smaller, autonomous entities and removing coins from circulation so there are fewer coins available overall reducing their supply.

Conclusion

MKR surged Friday above $1,200 following activation of this new buyback scheme and has risen 10% since then to its current price around 1k140$. A representative from a16z did not immediately return request for comment regarding their transactions but it seems clear that they are taking advantage of this surge in token value due to ongoing efforts being made by MakerDao team and its partners towards achieving long-term sustainability goals set forth under their Endgame Plan initiative