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Avalanche Foundation Completed $250 Million Private Funding

Key Points:

The Avalanche Foundation secured $250 million from investors like Galaxy Digital and Dragonfly to foster strategic partnerships.
Avalanche will launch “Avalanche9000” on December 16, introducing a subscription-based model for validators to reduce blockchain setup costs.

According to Forbes, the Avalanche Foundation has raised $250 million through a private token sale to indicate renewed investor confidence in blockchain ventures as the crypto market starts to regain its feet.

Avalanche Foundation Raises $250M to Power Blockchain Partnerships

Led by Galaxy Digital, Dragonfly, and ParaFi Capital, more than 40 companies, including SkyBridge and Morgan Creek Digital, participated in the funding round.

Despite the large injection of capital, Avalanche says it wasn’t a funding round. Forbes estimates that the Avalanche Foundation treasury contains approximately $3 billion worth of AVAX tokens. “The primary goal was to get alignment and incentivize the right kinds of partners to build with,” says Avalanche cofounder Emin Gün Sirer.

This is not the first big fundraising for Avalanche. During the 2021 crypto bull run, the foundation raised $230 million in a similar token sale.

Institutional Funds Flock to Avalanche for Tokenized Finance

The funds come as Avalanche prepares to launch “Avalanche9000,” its most ambitious upgrade, on December 16. The update aims to reduce the cost of launching blockchains in its ecosystem.

The current need for 2000 AVAX to set a node will change to a subscription-based one, in which validators will be charged at a monthly rate of 1.33 AVAX. Upgrading the effort further speaks to Avalanche’s vision for multi-chains, which emphasizes customized features over the all-in-one model.

Avalanche isn’t just about infrastructural enhancements. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), currently the largest tokenized fund worldwide with a market cap of $561.5 million, is a product of Avalanche and Franklin Templeton’s OnChain U.S. Government Money Market Fund. In addition, ParaFi Capital tokenized part of its venture fund on Avalanche blockchain in September.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.