Entropy is shutting down and will return capital to investors. Tux Pacific announced this Saturday in a post on X.
“After four years, several pivots, and two rounds of layoffs, I’ve decided to wind-up Entropy and return capital to our investors,” he wrote. Entropy launched in late 2021 as a decentralized self-custody solution.
The company raised about $25 million in a June 2022 seed round. The round was backed by Andreessen Horowitz and Coinbase Ventures, as reported backing.
During the second half of 2025 the team built a crypto automations platform that integrated artificial intelligence. The product aimed to function like mainstream workflow tools such as Zapier.
“After an initial feedback request revealed that the business model wasn’t venture scale, I was left with the choice to find a creative way forward or pivot once more,” Pacific added. He said the company had no viable path forward and would wind up operations.
Farcaster, another project backed by Andreessen Horowitz, said it would return $180 million to investors amid a takeover by Neynar. Farcaster co-founder Dan Romero denied shutdown rumours and said Neynar would steer the project toward developers while usage remained strong.
