Algocoin, an upcoming cryptocurrency that uses blockchain technology, has raised $1 million in a new round led by Silicon Valley venture capital firm Andreessen Horowitz.
The funding will help build the company’s infrastructure, product development and customer support teams, according to a press release from the company.
“Algocoin is a blockchain-based distributed ledger and distributed consensus platform that enables decentralized applications and applications that are fast, cheap and secure, all while retaining privacy, scalability, security, and privacy,” Algo co-founder and CEO Alexander Vujicic said in the release.
“This is an important milestone in Algo Coin’s development, and we look forward to the continued success of the team.”
Algo coin is the first of many altcoins to see an influx of funds.
A number of new coins have raised around $300 million in the past few weeks, including Bitcoin Cash, Dogecoin and Litecoin.
The coin’s current market cap stands at $3.5 billion.
CoinMarketCap estimates the coin to be worth around $800 million, though this is likely optimistic given its low trading volume.
Algo coins were originally launched by co-founders Pavel Durov and Aleksey Golovkin.
The two have previously co-founded Bitfury, which has seen its valuation skyrocket to around $1 billion, according the CoinDesk Bitcoin Price Index.
Durovs was recently named one of the world’s 50 most influential people by Forbes.
Algoritm CEO Sergey Nazarov told CoinDesk in a statement that he believes Algo is a “high-value” coin that will “be a long-term asset.”
The Algorithm team is comprised of “experts in cryptocurrency, blockchain technology and data science”, according to the release, though Nazarov declined to provide any specifics.
Algos technology can be applied to many different types of applications, including smart contracts, the release added.
The company plans to use the money to improve its product development, expand its customer support and build a team of engineers, the press release said.
Alga coin is currently in the process of securing funding, according CoinDesk.
Algemeiner, a bitcoin mining and trading site, has also received a $2.3 million funding round led directly by Andreessen.
CoinDesk reported in February that Algo and Algoshash were in talks.
CoinDash, another cryptocurrency, is currently valued at around $600 million.
The project has raised around 30,000 BTC and is currently building an infrastructure for blockchain-powered applications, the company said in a press statement.
CoinDance, an app for playing video games, was also recently backed by Andreas Andreessen to raise $1,500,000.
CoinDex, an online wallet service, was recently added to CoinDesk’s list of “Crypto Currency Series A” companies.