Andreessen Horowitz’s crypto fund and Polychain Capital have reportedly made an investment in cryptocurrency payment startup Celo, adding to the already impressive list of backers that includes Jack Dorsey, Reid Hoffman and Arianna Simpson.
According to the announcement, a16z crypto has purchased $15 million worth of Celo Gold and Polychain Capital has purchased $10 million, on top of a number of unnamed institutions across the Americas, EMEA and Europe that bring the total amount raised to $30 million.
Not Real Gold, Celo Gold ?
The startup has two tokens, Celo Gold, which has a fixed supply, and the Celo Dollar, which is a USD-pegged stablecoin. Much like Maker’s (MKR) relationship with Dai (DAI), Celo Gold tokens help control the circulation of Celo Dollar tokens, keeping the value pegged to a dollar.
Celo’s protocol is designed to be mobile-friendly where users can easily send and receive funds from their smartphone device, in addition to a number of other applications like identity verification.
Celo is planning to release a public testnet of its platform this summer when it will also be open-sourcing its code base.
“We’ve also taken significant strides in piloting the technology and understanding user behavior across different markets,” stated the Celo team. “While the benefits of the Celo Platform are applicable to all, the initial focus is on helping those who need it most: particularly the 1 in 3 adults who are involuntarily unbanked or underbanked or those who lack access to sound currency.”
a16z previously bought 6% of the Maker supply for $15 million (It’s now worth $45 million).
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.