Key Takeaways
- The Avalanche Foundation raised $250 million in a token sale led by Galaxy Digital, Dragonfly, and ParaFi Capital.
- Avalanche plans to launch 'Avalanche9000', reducing usage costs with a subscription-based fee model.
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Avalanche Foundation has closed a $250 million funding round led by Galaxy Digital, Dragonfly, and ParaFi Capital, Forbes reported Thursday. This massive investment is one of the largest fundraising rounds in the crypto sector since the 2022 market crash, second only to Ava Labs' $350 million funding round in 2022.
The most recent private token sale attracted more than 40 other investors, including SkyBridge and Morgan Creek Digital. Forbes said the increase comes as Avalanche's finances are worth about $3 billion of the AVAX token.
“The main goal was to align and encourage the right types of partners to build with,” said Avalanche co-founder Emin Gün Sirer. The foundation previously raised $230 million in a token sale in December 2021.
The news comes ahead of Avalanche's highly anticipated “Avalanche9000” update, scheduled for December 16th.
This update is mainly aimed at reducing the costs associated with launching blockchains on the Avalanche platform. Instead of an upfront payment of 2,000 AVAX, testers will now be able to pay a monthly membership fee of 1.33 AVAX.
“One chain cannot serve all use cases, no matter how fast you do it. The only winning architecture is multi-chain,” Gün Sirer said. “Horizontal scaling that we can enjoy is completely different from Ethereum, Solana and others.”
The platform has gained traction across the gaming and financial sectors. “Off The Grid”, a battle royale game built on Avalanche, became the most downloaded free game on the Epic Games store in October.
BlackRock USD Institutional Digital Liquidity Fund, with a market cap of $561 million, expanded into Avalanche from Ethereum, along with Franklin Templeton's OnChain US Government Money Market Fund.
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