Maker is the decentralized governing organization behind DAI, a stablecoin whose value is pegged to $1 using a dynamic system of collateralized debt positions, meaning the coin is fully asset-backed. MKR operates as a governance token for risk-based decisions that will impact the ecosystem.
The price of MKR has been in a steady uptrend since bottoming with the rest of the market on September 12, however, a recent investment from a16z crypto, the venture firm’s new fund fully dedicated to investing in cryptocurrency and blockchain-related companies, has added additional bullish momentum to the altcoin.
On September 24, Maker announced that the organization had unilaterally sold 6% of the total MKR supply to Andreessen Horowitz for $15 million. The investment was made at a roughly 25% discount to the price at the time and the money will be used for funding over the next three years.
Since this strategic investment was announced, Maker has continued higher, moving back above $500 at the start of October and jumping over $100 in the last two days. MKR now has a $449 million market cap, making it the 23rd largest coin in the AltDex 100 Cryptocurrency Index (ALT100).
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.