Avalanche raised $250 million in a token sale ahead of its mainnet upgrade

The Avalanche Foundation has announced that it will raise $250 million through a closed sale of the AVAX token. Avalanche blockchainahead of the planned launch of its significant Avalanche9,000 network upgrade.

The investment is as follows Launch of Avalanche9,000 testnetdesigned to make it cheaper and easier to build on Avalanche and deploy dedicated, application-specific networks called “L1s”, formerly known as Avalanche subnets.

More than 40 venture capital firms participated in the sale, led by Galaxy Digital, Dragonfly and ParaFi Capital.

“Avalanche’s upcoming upgrade to Avalanche9,000 is a crucial step towards the development of the decentralized financial ecosystem,” said Haseeb Qureshi, managing partner at Dragonfly. in the statement. “We believe Avalanche is uniquely positioned to enhance Web3 and blockchain scalability.”

Avalanche is a layer 1 blockchain network that first gained notoriety as a competitor to Ethereum, promising cheaper and faster transactions to power decentralized applications or dapps. Over time, it became a prominent network for drums, for example, along with Solana.

Scheduled for release in early 2025, Avalanche9,000 Avalanche L1s will reduce installation costs by 99.9%. As of late November, there are more than 500 Avalanche L1s in development, popular examples of app-specific blockchains run by game developers like this one. Off the Grid and the Shrapnel.

As part of the implementation, the Avalanche Fund encourage builders $40 million in retroactive grants, including up to $2 million in referrals through the Retro9,000 program.

Avalanche’s original stock, AVAX, is trading at $52.30, up more than 10% in the last 24 hours. Its market cap of $21 billion ranks it as the 12th largest crypto asset by market cap, according to CoinGecko.

Edited by Andrew Hayward