The Avalanche Foundation, which oversees the development of the blockchain of the same name on the Proof-of-Stake mechanism, today reported raising $230 million as part of the closed sale of AVAX tokens. The sale itself took place in June.
According to the press release, the investment round was headed by Polychain and Three Arrows Capital funds. R/Crypto, Dragonfly, CMS Holdings, Collab+Currency, Lvna Capital and a group of unnamed investors also became its participants.
The developers intend to use the attracted funding for the further development of decentralized finance on their blockchain, as well as new corporate tools. Part of the funds will be spent on grants, the purchase of tokens and other forms of support for projects working with Avalanche.
"The funding will go to support the development of the DeFi ecosystem, NFT, collectibles and certain new innovative systems that arise from all this," said Emin Kyun Sirer, director of the Avalanche Foundation, specifying that the latter category includes "new types of assets".
In August, Avalanche opened a $180 million mining program with the help of liquidity to attract DeFi projects. Avalanche was launched in September 2020 and currently supports over 225 projects, including Tether, SushiSwap, Chainlink, Circle and The Graph.
The purchased tokens give investors the right to participate in the management of the platform and thus direct its development. The AVAX token has risen in price by 20% over the past day and by 230% over the month. Currently, it is the 12th largest asset on the market with a capitalization of $14.1 billion.
Gun Sirer assured that new investors "know what to do with their coins in the DeFi ecosystem."
"The purchase of tokens, especially with a blocking period, is a bet on the growth of the ecosystem and distribution. Whether this bet will play depends on many participants, but at the same time it reflects the belief in the development of the ecosystem as a whole, whereas equity investments are a bet on one education," he added.