Ethereum (ETH) Rival Avalanche (AVAX) Raises $250,000,000 From Locked Token Sale Led by Galaxy Digital, Dragonfly and ParaFi Capital

According to a new announcement, Avalanche says that more than 40 companies participated in the sale, including SkyBridge, Hivemind and Morgan Creek Digital.

Ava Labs, the team behind Ethereum (ETH) rival Avalanche (AVAX), announced raising $250,000,000 in a locked token sale led by Galaxy Digital, Dragonfly and ParaFi Capital.

The sale saw participation from over 40 firms, including SkyBridge, Hivemind and Morgan Creek Digital.

A locked token sale refers to the sale of tokens that are subject to vesting or lock-up periods.

The proceeds from the sale will be used to support the blockchain’s upcoming upgrade, dubbed Avalanche9000.

“The capital raise follows the launch of the Avalanche9000 testnet, a key development that paves the way for the upcoming mainnet network upgrade on Monday, December 16th, which will see Avalanche layer-1 (L1) deployment costs slashed by 99.9%, and transaction fees on the established C-Chain reduced by 25X.”

According to the project, the upgrade is expected to drive increased network utilization across multiple crypto sectors.

“Avalanche9000 is powering the next generation of scalable, purpose-built L1 blockchains, with over 500 L1s already in development across sectors including tokenization of real-world assets, loyalty and rewards, gaming, payments and institutional programs.”

Commenting on the development, Galaxy’s global head of trading, Jason Urban, highlighted the role of the funding in advancing blockchain technology.

“Our support of Avalanche, and the growth and scalability of blockchain protocols, is essential to the future of this industry. 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.”

At the time of writing, AVAX is trading at $52.51, having risen by 9.4% in the last 24 hours.