Avalanche ecosystem accelerator Colony raised $18.5M in seed funding
AVAX is one of the year's top crypto performers, with the likes of Three Arrows Capital and Polychain Capital supporting the PoS chain.
Avalanche ecosystem accelerator Colony has raised $18.5 million in seed investments to bootstrap the next generation of Avalanche blockchain projects, underscoring heightened demand for the proof of stake ecosystem.
The investment round was driven by the Avalanche Foundation, an organization overseeing ecosystem development grants, with additional participation from Shima Capital, Hashkey, GBV Capital, and Bixin Ventures, Members of the Avalanche community likewise participated in the seed round.
The colony will utilize the funds to finance early-stage projects building on the Avalanche network and to give liquidity to decentralized finance, or Defi, protocols. colony's community called ecosystem farming.
Under the colony's validator program, 10% of the accelerator's capital will be deployed in Avalanche's native AVAX token to be staked. Another 10% will be allocated to the top 10 Avalanche projects by market capitalization Fifty percent will be used to support teams and project building on that network, with the remaining 30% assigned to liquidity protocols.
Avalanche has quickly emerged as a leading blockchain project after receiving backing from some of crypto's biggest venture funds. including Zhu Su's Three Arrows Capital and Polychain Capital, among others. The value of AVAX has skyrocketed as a result. gaining over 2,900% year to date. At current values, Avalanche has a total market capitalization of $25.9 billion. putting it in the 11th spot among active blockchain projects.
The Avalanche Foundation toward the Avalanche foundation in early November uncovered a new $200 million fund to encourage developers to start building on the system. Three Arrows Capital. Poly Chain Capital, Dragonfly Capital, CMS Holding, and Ava Labs contributed financing close by the Avalanche Foundation. At the time, the foundation said that its new fund would prioritize four areas: Defi, enterprise applications, nonfungible tokens(NFTs) and so-called culture applications.