Avalanche, a smart contract-enabled cryptocurrency, has received a $230 million investment from a group of VC companies. The funding round, which is being described as a private sale, was led by Polychain and Three Arrows Capital, with the participation of other companies. This investment will give these companies participation in on-chain Avalanche governance and exposure to the price via token ownership.
Polychain and Three Arrows Capital Put Funds in Avalanche
Avalanche, one of the youngest smart contracts-enabled cryptocurrencies, has raised $230 million in a funding round led by Polychain and Three Arrows Capital, two leading VC companies. The funding round, which was categorized as a private token sale, also had the participation of R/Crypto Fund, Dragonfly, CMS Holdings, Collab+Currency, Lvna Capital, and a group of angel investors.
About the interest of these venture capital companies, Emin Gun Sirer, director of the Avalanche Foundation, stated:
Despite being years younger than its peers, Avalanche has quickly turned promise and potential into real-world impact and value creation for DeFi users and developers.
The Avalanche blockchain has encountered some problems in the past, but now its defi ecosystem is booming, thanks in part to a program of liquidity incentives called Avalanche Rush. This has made yield seekers flock to the chain to get more earnings.
Funding and Grants Coming
The Avalanche foundation stated that the funds coming from the token sale (held in June) will be used to incentivize and support the growth of defi, enterprise applications, and other use cases on top of the Avalanche blockchain. The funds will be invested in giving grants, token purchases, and various forms of investments for projects in the ecosystem.
The blockchain is now experiencing the defi boom, supported by several platforms built on top of its services. According to Defillama, a defi aggregator, there is now more than $2.7 billion locked in Avalanche defi protocols, a rise of 7.36% in the last 24 hours. The price of avax, the native currency of the blockchain, has also spiked due to the funding news, reaching ATH levels of $67.52 at the time of writing.
Investors were very optimistic about the current state of the project and its future in the market. Kyle Davies, chairman at Three Arrows Capital stated:
Avalanche has found a product-market fit for what DeFi users want today, while also building for where the space is moving with custom blockchains on the platform.
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