Backed by several VC, Avalanche has raised $250 million in a private token sale amid renewed interest and growth in the cryptocurrency market.
Avalanche has raised $250 million in a private token sale. This funding comes at a time when the cryptocurrency market is showing signs of renewed interest and growth.
The round, featuring prominent firms like Galaxy Digital, Dragonfly, and ParaFi Capital, with additional support from SkyBridge and Morgan Creek Digital, will enable Avalanche to strengthen strategic partnerships rather than merely boost its financial reserves.
Avalanche is a blockchain platform known for fast, affordable, and flexible digital transactions. It’s ideal for decentralized apps, custom blockchains, and digital asset trading, processing transactions in seconds at low costs.
A key feature is its ability to create custom blockchains, or “subnets,” for specific purposes like gaming or finance. Avalanche uses a proof-of-stake mechanism, more energy-efficient than Bitcoin’s proof-of-work, with validators staking AVAX to secure the network and earn rewards.
Avalanche9000 coming soon
Avalanche will on December 16 launch its most significant upgrade to date, Avalanche9000. This update is designed to reduce the cost for developers building blockchains within the Avalanche ecosystem.
Previously, developers were required to pay 2,000 AVAX upfront to set up a node, which was a significant investment at the current token price of $48 as of December 11. The new system will switch to a subscription model, allowing validators to pay 1.33 AVAX per month, making the process more accessible.
Avalanche cofounder Emin Gün Sirer argues that relying on a single blockchain for all tasks is impractical, regardless of its speed. Different applications and users have unique needs, and a single chain cannot efficiently manage this wide variety of demands. He advocates for a multi-chain architecture, where multiple blockchains collaborate to handle different tasks or use cases.
He also highlights that Avalanche’s approach to scaling, known as horizontal scaling, sets it apart from other blockchains like Ethereum and Solana. Horizontal scaling allows the system to grow by adding more chains, each tailored to specific functions, rather than trying to make one chain do everything.
This method ensures better performance and flexibility, enabling Avalanche to support a broader range of applications and users without becoming slow or congested.
Read also: Avalanche to repurchase AVAX from Luna Foundation Guard
Jason Urban, the head of trading at Galaxy Digital, stressed the importance of Avalanche’s collaboration with institutional investors. He explained that the partnership is designed to elevate Avalanche’s standing among major financial players.
By creating stronger connections with serious investors, Avalanche aims to accelerate both innovation and growth. Urban also noted that Galaxy Digital, as a major institutional player, seeks to work with other similarly large and influential organizations. This strategy broadens Avalanche’s reach, making it more appealing to institutions and enhancing its ability to scale and innovate effectively.
Haseeb Qureshi, managing partner at Dragonfly, highlighted Avalanche’s readiness for the next phase of cryptocurrency adoption. He explained that with clearer regulations and significant resources, Avalanche is preparing to welcome traditional businesses into the blockchain space.
Qureshi described this moment as a turning point, where the groundwork laid by platforms like Avalanche could lead to a surge in new participants. He noted that large-scale developments, particularly those involving established companies, require substantial resources, and Avalanche is positioning itself to meet those demands successfully.
