Coinspeaker Avalanche Secures $250M in Private Token Sale Ahead of Major Upgrade
The Avalanche Foundation has successfully raised $250 million through a private token sale, marking one of the largest fundraising efforts in the crypto sector since the 2022 market downturn. According to a recent Forbes report, the funds from the sale will be used to enhance Avalanche’s infrastructure, focusing on scalability and efficiency for decentralized applications.
Interestingly, the funding round saw participation from prominent investors like Galaxy Digital, Dragonfly, ParaFi Capital, SkyBridge, and Morgan Creek Digital. In total, over 40 investors contributed to the sale, reflecting growing confidence in the Avalanche ecosystem.
Despite holding around $3 billion worth of its native AVAX $53.87 24h volatility: 12.4% Market cap: $21.99 B Vol. 24h: $1.33 B tokens, the Avalanche Foundation opted for this fundraising initiative to foster strategic partnerships. “The primary goal was to get alignment and incentivize the right kinds of partners to build with,” Avalanche co-founder Emin Gün Sirer explained.
It is important to note that this is not the Avalanche Foundation’s first significant fundraising milestone. It had secured $230 million through a token sale back in December 2021.
Upcoming Upgrade
The announcement comes just days before the highly anticipated “Avalanche9000” upgrade, scheduled for December 16. This upgrade introduces a subscription-based fee model, dramatically lowering the costs for validators launching blockchains on the platform. Instead of a previous upfront payment of 2,000 AVAX, validators will now pay a monthly fee of just 1.33 AVAX.
Gün Sirer explained the necessity of a multi-chain architecture to accommodate diverse use cases effectively, rather than relying on a single, fast chain. This strategic focus on horizontal scaling sets Avalanche apart from other platforms like Ethereum and Solana. Notably, data by DefiLlama shows that the platform currently boasts $1.62 billion in total value locked (TVL).
Avalanche has recently been making waves across the gaming and finance sectors. The battle royale game Off The Grid, built on Avalanche, became the most downloaded free game on the Epic Games store in October. Additionally, prominent funds like BlackRock’s USD Institutional Digital Liquidity Fund and Franklin Templeton’s OnChain US Government Money Market Fund have migrated to Avalanche from Ethereum.
AVAX Price Gains
Avalanche’s native token, AVAX, has responded positively to the funding news. At the time of writing, AVAX is trading at $52.89, up by around 10% in the past 24 hours. With a market cap of $21.63 billion, the token currently ranks 11th among the largest cryptocurrencies by market capitalization.
As per the daily chart provided by TradingView below, the Relative Strength Index (RSI) for the Avalanche price action reads a value of 62.61, which means that the buying pressure for the cryptocurrency is quite high. Further, the gradient of the line suggests that higher prices can be expected in the short term.
Moreover, the MACD indicator, which confirmed a bearish divergence a few days earlier, has now turned slightly optimistic with the signal line and MACD line coming close once again. There is a possibility that a bullish divergence might be witnessed, which could push AVAX towards the $60 price level.
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Avalanche Secures $250M in Private Token Sale Ahead of Major Upgrade
