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Avalanche Foundation has raised $250 million in a token sale led by Galaxy Digital, Dragonfly, and ParaFi Capital. Avalanche plans to launch Avalanche9000, which reduces implementation costs with a subscription-based pricing 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 huge investment is one of the largest funding rounds in the crypto sector since the 2022 market downturn, and second only to Ava Labs' $350 million funding round in 2022. .
More than 40 other investors also participated in the latest private token sale, including Skybridge and Morgan Creek Digital. Forbes said the increase comes as Avalanche's treasury holds approximately $3 billion worth of AVAX tokens.
“The main goal was to collaborate and encourage the right kind of partners to build together,” said Avalanche co-founder Emin Gün Sirer. The foundation previously raised $230 million in a token sale in December 2021.
The announcement comes ahead of Avalanche's long-awaited Avalanche9000 upgrade scheduled for December 16th.
This upgrade aims to significantly reduce the costs associated with launching a blockchain on the Avalanche platform. Validators will now be able to pay a monthly subscription fee of 1.33 AVAX instead of a higher upfront payment of 2,000 AVAX.
“No matter how fast it gets, no single chain can handle all use cases. The only winning architecture is multi-chain,” Gün Siler said. “The horizontal scaling that we enjoy is fundamentally different than something like Ethereum or Solana.”
The platform is gaining 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's USD Institutional Digital Liquidity Fund, with a market capitalization of $561 million, has expanded from Ethereum to Avalanche, alongside Franklin Templeton's on-chain U.S. Government Money Market Fund.
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