Entropy, a decentralized hosting startup backed by a16z, has announced its closure.

According to a report by The Block on January TechFlow, Tux Pacific, founder of Entropy, announced that the decentralized crypto custody startup, which had previously raised $25 million in funding led by a16z, will cease operations and return the remaining funds to investors. Pacific stated that after four years of operation, multiple business transformations, and two rounds of layoffs, the company failed to find a business model suitable for its venture capital scale. Founded in 2021, Entropy raised approximately $27 million in total funding and focused on developing crypto asset management solutions based on multi-party computation.