The new fund will focus on venture and seed investments

The drop in cryptocurrency prices and the collapse of the TerraUSD stablecoin, on the other hand, hasn’t deterred venture capitalists, who believe the market has a lot of potentials.

Andreessen Horowitz announced on Wednesday that he has raised $4.5 billion for a crypto fund, the industry’s largest to date.

Andreessen Horowitz faces conflict over his role in crypto

The firm will spend $3 billion in venture capital and $1.5 billion in seed capital, bringing its total digital asset-focused investments to $7.6 billion.

Crypto exchange Andreessen Horowitz, Coinbase Global Inc., non-fungible token marketplace OpenSea, NBA Top Shot creator Dapper Labs, and Sky Mavis, NFT game producer Axie Infinity, are among the companies backed by Andreessen Horowitz.

Horowitz is challenging previous attempts put forward by the industry’s top proponents, who claim to have a better understanding of the nuances of blockchain and token governance policies than traditional corporations who spread their bets in collaboration with the Andreessen Foundation.