The Avalanche Foundation, the organization behind the Avalanche blockchain protocol, founded by Emin Gün Sirer, has raised $12 million in a new private sale of tokens.
According to an announcement on June 25, the sale was led by the industry’s leading investors, including Chinese mining giant Bitmain and Mike Novogratz’s Galaxy Digital. The token sale comes ahead of the launch of AVA’s mainnet scheduled for summer 2020.
Other major investors in the AVA token sale included the San Francisco-based venture capital firm Initialized Capital, NGC Ventures and Dragonfly Capital. Dozens of others have also participated in the private sale, AVA Labs said.
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Public sale comes after private round
After the private sale, Avalanche Foundation will also hold a public sale in accordance with U.S. federal financial regulations.
Within the sale, all investors must represent „qualified investors“ as defined in Rule 501 of Regulation D. Otherwise, investors must not be „U.S. citizens“ as defined in Regulation S of the Securities Act and must meet other eligibility standards. The next sale, which includes registration and the Know Your Customer process, is scheduled for at least two weeks, beginning July 8, according to AVA Labs.
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The native token of the AVA project is called the Avalanche token
By participating in token sales, investors are buying the rights to own a certain amount of Avalanche (AVAX) tokens that will be issued at the mainnet launch in the summer. At the launch, 50% of the 720 million Bitcoin Rush limit will be issued, an AVA Labs spokesperson told Cointelegraph.
The Avalanche token is the native token of the Avalanche platform and is not linked to any assets. AVAX will be used to secure the AVA network through staking, provide a basic unit of account between AVA subnetworks and pay network fees, AVA Labs said.