Andreessen Horowitz deposited 300,000 Compound tokens into Coinbase Prime on Saturday after holding the digital assets for four years, according to blockchain analytics firm Lookonchain.
The tokens, worth approximately $13.76 million, represent a portion of the venture capital firm’s substantial holdings in Compound, a decentralized finance platform that allows users to lend and borrow cryptocurrencies.
The Silicon Valley-based firm, known as a16z, originally received nearly 1.35 million COMP tokens through its early investments in Compound. The firm led an $8.2 million seed round in 2018 and a $25 million Series A round in 2019 for the Ethereum-based lending protocol.
Those original holdings are now valued at $61.7 million based on current market prices of $50.02 per token, according to Coinbase data.
Lookonchain reported that a16z retains about 676,000 COMP tokens worth $31 million across multiple digital wallets, suggesting the firm has previously moved portions of its cryptocurrency holdings.
The deposit into Coinbase Prime, an institutional trading platform, comes as Compound maintains its position as a major player in decentralized finance with $2.37 billion in total value locked, ranking ninth among DeFi protocols according to DeFi Llama.
Representatives for a16z and Compound did not immediately respond to requests for comment about the purpose of the transfer.
The move has generated discussion among cryptocurrency analysts, with some noting that large deposits to exchanges can signal potential sales or liquidity adjustments. Technical analysis suggests a bearish outlook for COMP, with declining trading volume and negative momentum indicators.
a16z’s broader cryptocurrency portfolio includes significant stakes in other digital assets, with $428 million in Uniswap tokens and $10.5 million in Optimism tokens, according to blockchain data.
The transfer highlights the continued influence of venture capital firms in the cryptocurrency market, where early investors often hold substantial portions of token supplies that can impact prices when moved.
Compound continues to distribute about 1,234 COMP tokens daily to users of its platform, with approximately 2.55 million tokens remaining for future distribution.
Leave a Comment