Blockchain firm Avalanche Foundation has undertaken a token sale to raise capital. According to the platform’s official announcement on December 12th, Avalanche Foundation has raised $250 million in financing through a private token sale.
The key players who have participated in the token sale are Galaxy Digital, Dragonfly and ParaFi alongside more than 40 other companies.
Avalanche Foundation, which has been neck to neck in competition with Ethereum, has been undertaking expansion drives to become an industry giant.
Avalanche’s Token Sale Not New For Market
The tactic of using a token sale to raise capital is not a new step for Avalanche. The last similar token sale by Avalanche Foundation was in December 2021, when it raised $230 million
However, the Avalanche Foundation maintains that money is not the main factor. In fact, the ecosystem’s treasury currently has roughly $3 billion worth of its own AVAX token.
The main objective of this token sale was to align and incentivize the appropriate types of partners to build with, according to Emin Gün Sirer, cofounder of Avalanche.
$AVAX Price Surges Past 12% Amid Market Reaction
$AVAX price surged past 12% amid a positive market reaction to the capital raise news. At the press time the coin is trading at $52.36, up 11.45% as compared to the same time last day. The market cap is now at over $21.41 billion.
The price rise is in tandem with the broader market, as Bitcoin has surpassed the $100K mark for yet another trading session.
Avalanche’s New Testnet Launch Keeps Market Upbeat
Avalanche Foundation has launched the Avalanche9000 testnet back in November. Therefore, the capital infusion comes just after Avalanche9000 testnet launch, a significant milestone that sets the stage for the next mainnet network upgrade that will lower the deployment costs of the Avalanche Layer 1 (L1) blockchain by 99.9% and lower transaction costs on the established C-Chain by 25X.
Additionally, the Avalanche9000 testnet presents Retro9000, a $40 million retroactive grant program that supports developers building on Avalanche and includes $2 million in referral rewards.
“Our support of Avalanche, and the growth and scalability of blockchain protocols, is essential to the future of this industry,” said Jason Urban, Global Head of Trading, Galaxy.
He adds, “By helping Avalanche reach a broader institutional investor base, we are accelerating their ability to innovate and scale. At Galaxy, we are providing Avalanche with the strategic resources and services needed to foster institutional participation and long-term growth, ensuring they can lead the next wave of blockchain adoption with Avalanche9000.”
Avalanche Partners With Visa
Avalanche Foundation has been gaining enough market traction for its expansion policies. Just previously, a new Visa cryptocurrency card had been released by the Avalanche Foundation, enabling users to easily spend their cryptocurrency at payment locations.
The Avalanche Card at present accepts Circle’s USD Coin (USDC), Wrapped AVAX (wAVAX), BENQI Liquid Staked AVAX (sAVAX), and additional cryptocurrencies.
The Avalanche Card website states that the card can be used “anywhere Visa is accepted” and will be accessible both physically and virtually.