Avalanche Launches $220M Crypto Fund for DeFi and NFTs
The Avalanche Foundation recently released Blizzard, a crypto development fund for the network’s growth. The blockchain will use the 220 million dollars fund to target NFTs and DeFi opportunities.
The funds comprise of contributions from the Avalanche Foundation (Singapore-based NPO), Ava Labs (New York-based Firm building Avalanche’s platform), and several investors from the latest 230 million dollars capital raise.
Some of these investors are Three Arrows Capital, CMS Holdings, Polychain Capital, Dragonfly Capital, Collab + Currency, R/Crypto Fund, Lvna Capital, and more. The latest announcement boosted the network’s popularity, causing traders to look for an Avalanche forecast.
John Wu, the president of Ava Labs, stated that the fund might fluctuate in value due to Avalanche’s token and cash holdings. However, it is worth 220 million dollars currently. The blockchain holds the most value in AVAX, its native crypto, but it may add other tokens.
Blizzard is another nine-figure strong incentive program by a blockchain to score market growth. But, surprisingly enough, the campaign falls on the smaller side of the spectrum compared to several recent programs.
Binance announced a 1 billion dollar fund for the BSC last month while the Near protocol released 800 million dollars to focus on DeFi. Celo and Algorand topped both releases and spent more than 2.2 billion dollars in growth capital in two months.
Blizzard will add to Avalanche’s 180 million dollar DeFi incentive program called the ‘Avalanche Rush’. The network has witnessed tremendous growth in transactions ever since its release in August.
According to Avalanche Explorer, the number of transactions has surged from 4 million to 18.5 million. Similarly, Avalanche’s AVAX token has surged three times in price, reaching 62 dollars from 21 dollars.
The latest funds will focus on four main areas: enterprise applications, social tokens and gaming, culture applications and NFTs, and DeFi. However, Avalanche may also work on other initiatives like building digital identities and issuance of security tokens.
Wu stated that the network has pre-allocated Blizzard. Instead, Avalanche will use it for token purchases, equity investments, and supporting the development of partnerships, business, and technology.
Avalanche is launching Blizzard at a crucial point, where DeFi and NFTs are witnessing enormous growth. It will be a major step for the growth of the network and the industry in general
Original Source