Andreessen Horowitz made a big bet on crypto at the worst possible time

When cryptocurrency prices were soaring last year, Andreessen Horowitz was one of the most bullish investors in the sector. With a 50-year-old partner named Chris Dixon who was an evangelist for blockchain technology, the storied venture-capital firm had developed a reputation as Silicon Valley’s greatest crypto bull.

In May of last year, they announced a $4.5 billion crypto fund, the largest ever for such investments. However, with the cryptocurrency prices plunging this year and wiping out billions of dollars in paper gains, things have not gone as well as they hoped. Many of their prized crypto startups are seeing less consumer demand, while others are facing increased scrutiny from regulators.

The flagship crypto fund has lost around 40% of its value in the first half of this year, according to people familiar with the matter. This is a far cry from what was once the Crypto King of Silicon Valley.

What’s next for Andreessen Horowitz remains to be seen. But with the crypto market in such a state of flux, it’s unlikely that they will regain their former title anytime soon.