A16z-backed crypto startup Entropy to shut down

Crypto startup Entropy is closing operations and returning funds to investors after failing to find a scalable business model.

Founder and chief executive Tux Pacific announced the decision on X after four years of development and multiple pivots.

“After four years, several pivots, and two rounds of layoffs, I’ve decided to wind-up Entropy and return capital to our investors,”

Tux Pacific said.

Entropy launched in late 2021 as a decentralised self-custody solution before shifting focus.

The company raised $25 million in a 2022 seed round backed by Andreessen Horowitz and Coinbase Ventures.

In 2025, Entropy pivoted towards an AI-integrated crypto automation platform inspired by workflow tools.

Pacific said early feedback showed the model was not viable at venture scale.

“After four hard years working in crypto, I decided that the best I could do has already been done,”

Tux Pacific said.

The shutdown follows other high-profile crypto projects returning capital amid strategic resets.