Avalanche completes $230 million private sale of crypto token AVAX

Avalanche completes $230 million private sale of crypto token AVAX

Avalanche, a new blockchain that focuses on low transaction costs and speed, has reportedly concluded a private $230 million sale of AVAX tokens to several well-known cryptocurrency funds. The investment is being led by Three Arrows Capital and Polychain.

According to reports, the Avalanche Foundation concluded the private sale in June of 2021 and has just announced it recently. CMS Holdings, R/Crypto Fund, Dragonfly, Lvna Capital, and Collab+Currency were among the other participants in the private auction.

The profits from the private sale of AVAX would be utilized to sustain the Avalanche ecosystem, which is still in its early stages when compared to the Ethereum blockchain, for example. The foundation intends to promote DeFi (decentralized finance) projects as well as enterprise applications via token purchases, grants, as well as other types of investment.

When competing with Ethereum and other blockchains, having superior performance is part of the problem. Avalanche also must attract developers and establish a robust developer community in order to become the infrastructure for other crypto projects.

That is why Avalanche aims to make porting users’ Ethereum Dapp to Avalanche as simple as possible. Because Avalanche's smart contract chain runs Ethereum Virtual Machine contracts, meaning that people can reuse some of their existing codebase if they are active on the Ethereum blockchain.

Similarly, apps that query the Ethereum network may be modified to support Avalanche by adding network support and modifying API endpoints. The team of Avalanche has also been working on a bridge that will allow Ethereum assets to be transferred to the Avalanche network. This bridge has transported the equivalent of $1.3 billion in crypto assets.

While these are technical incentives, in terms of financial incentives, grants and private sales can help bootstrap the interest of developers. According to the Avalanche Foundation, the platform is now supported by 225 companies, including prominent crypto projects that also run on other blockchains, such as SushiSwap, Tether, Circle, The Graph, and Chainlink. Avalanche is also used by Topps, an NFT-based game with ties with the MLB as well as Bundesliga.

Source credit: https://techcrunch.com/2021/09/16/avalanche-raises-230-million-from-private-sale-of-avax-tokens/