Entropy, the startup that dared to make crypto feel secure (because we ALL know how that turns out), is shutting down with a middle finger to chaos… and a full refund.
Turns out, “massive success” means different things to VCs than “not going bankrupt.” Tux Pacific, Entropy’s CEO, explained that scaling to “investor-sized dreams” was harder than explaining NFTs to your grandma. Per reports, the team will return $25-$27 million like they’re hosting a very, very polite wind-down party.
How Entropy Lost Its Way (Spoiler: It Wasn’t the Crypto)
Reports say Entropy began as a LLC for crypto whale storage-basically a vault for people who think holding crypto is “trading” and not “sending money to a shadowy friend in Estonia.”
Then they pivoted to automation tools, because nothing says “smooth sailing” like building crypto workflows. Classic.
They raised dough from Andreessen Horowitz and Coinbase Ventures-because who wouldn’t want that on their résumé? Over four years, they survived two rounds of layoffs and more strategy sessions than a college student on Adderall.
In a very dramatic X post, Tux Pacific said: “After four years, several pivots, and two rounds of layoffs, I’ve decided to wind-up Entropy and return capital.” Because what says “wind-up” if not a lifeless startup and a spreadsheet full of regrets?
“I am winding-up Entropy.”
“After four years, several pivots, and two rounds of layoffs…”
“For the latter half of 2025, the Entropy team was hard at work on a crypto automations platform (basically n8n/zapier/etc…”
– tux pacific (@__tux) January 24, 2026
Decision To Return Capital – The Final Payoff
Big truths: 1) Investors wanted a “unicorn” and got a snail. 2) Their business model was “let’s pivot again” repeated in a loop. They tweaked products and tried new angles… all while revenue crept like a morning person.
Sometimes the product survived on “small wins” (read: temporary delusions), and other times it was just waiting for the next pivot to sniff life back in.
Investors get their money back-yay for them! This isn’t the WeWork-level gaslighting meltdown some feared. Cash refunds via formal steps are coming, because even crypto collapse has standards now.
Tux hinted they might leave crypto for medical research, because who doesn’t want to cure cancer after building a crypto automations platform? Eh, maybe.
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2026-01-27 03:11