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- Avalanche accelerator Colony has raised $18.5 million in a seed funding round
- The latest raised funds will be used to bootstrap the next generation of Avalanche blockchain projects
- The accelerator Colony’s community will also be offered an opportunity to invest in early-stage projects through a process known as the ecosystem farming
Avalanche has been considered one of the most rapidly growing blockchain projects. Avalanche’s native crypto token has also been one of the top cryptocurrency performers of the year. Recently it has been revealed that blockchain’s accelerator Colony has raised $18.5 million in a seed funding round. The seeding round was led by the Avalanche Foundation. It is known that the latest raised funds will be used to bootstrap the next generation of Avalanche blockchain projects. Notably, the team also highlighted the heightening demand for the Proof-of-Stake ecosystem.
Avalanche has plans to fund early-stage projects
The latest seed funding round of Avalanche ecosystem accelerator Colony was led by the Avalanche Foundation. Notably, the foundation oversees the ecosystem development grants. Alongwith the organization are other ventures including Shima Capital, HashKey, GBV Capital and Bixin Ventures. Members of the Avalanche community who also participated in the funding session.
It has been announced that the latest raised funds will be used to finance early-stage projects that are emerging on the Avalanche’s blockchain network. Moreover, the funds will also be used to provide liquidity for decentralized finance or DeFi protocols.
How will the raised funds be used?
Besides other uses of the funds, the accelerator Colony’s community will also be offered an opportunity to invest in early-stage projects through a process known as the ecosystem farming. Notably, under the validator program 10% of the accelerator’s capital will be deployed in the blockchain’s native AVAX token to be staked. One the other hand, the other 10% of the funds will be allocated to the top 10 projects on the network by market capitalization. 50% of the funds will be used to support teams and projects that are developing on the network. And the remaining 30% of the funds will be allocated to liquidity protocols.
Rapidly emerging blockchain project
Avalanche has been one of the rapidly emerging blockchain projects after receiving backing from some of the biggest crypto ventures. Such ventures included Zhu Su’s Three Arrows Capital and Polychain Capital, and more. Simultaneously, the value of the AVAX tokens have also been observed skyrocketing since the establishment of the project. With a total market capitalization of more than $25.9 billion, AVAX is trading at the price level of $125.48 at press time. Furthermore, the token has gained more than 2,900% year-to-date.
