Crypto

The Avalanche Ecosystem Accelerator Has Raised $18.5 Million in Seed Capital

Colony Avalanche Ecosystem Accelerator

Avalanche (AVAX) is one of the best-performing cryptocurrencies in 2021, with investors such as Three Arrows Capital and Polychain Capital supporting the PoS chain.

Colony, an Avalanche ecosystem accelerator, has raised $18.5 million in initial funding to help declare the next generation of Avalanche blockchain enterprises, indicating that the proof-of-stake ecosystem is in high demand.

Shima Capital, HashKey, GBV Capital, and Bixin Ventures were among the investors in the round, which was led by the Avalanche Foundation, which oversees ecosystem development funding. The seed round was also attended by members of the Avalanche community.

The money will be used by Colony to fund early-stage enterprises based on the Avalanche network as well as provide liquidity for DeFi technologies. The community of Colony will also be able to invest in early-stage enterprises through a process known as ecosystem farming.

Colony’s validator program will invest 10% of the accelerator’s capital in Avalanche’s native AVAX token, which will be staked. Another ten percent will go to the top ten Avalanche projects in terms of market capitalization. The remaining 30% will be committed to liquidity protocols, with 50% going to support teams and projects built on the network.

After gaining investment from some of crypto’s greatest venture funds, including Zhu Su’s Three Arrows Capital and Polychain Capital, among others, Avalanche has quickly established itself as a major blockchain enterprise. As a result, the value of AVAX has increased by nearly 2,900 percent year to date. Avalanche currently has a total market capitalization of $25.9 billion, which places it 11th among active blockchain projects.

What Exactly Is Avalanche?

One thing to keep in mind about AVAX is that it is a crypto coin, not a crypto token. That is, rather than being a native token of a network or protocol that uses another blockchain, it is the native token of its blockchain. While the nomenclature may appear to be a technical issue, which it is, as we will see later, it is also critical to understanding avalanche.

The Avalanche blockchain aspires to be a competitor to Ethereum’s all-powerful blockchain. It aspires to accomplish the same goals as Ethereum. Most importantly, it should be a location where smart contracts may be executed. A smart contract is a computer program that automatically executes once certain circumstances are satisfied. Smart contracts are an important part of the cryptocurrency world, and having a place to use them is extremely beneficial to those who work in them. However, not all blockchains support smart contracts, and in the past, this lack of functionality in some networks has been a boon for Ethereum.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.