What happened?
The Avalanche Foundation plans to raise almost $1 billion through the creation of two cryptocurrency-hoarding vehicles, according to the Financial Times. The first vehicle, led by Hivemind Capital, aims to raise $500 million through a Nasdaq-listed company, while the second, led by Dragonfly Capital, is a $500 million special purpose acquisition company (SPAC). Funds raised will be used to purchase large quantities of AVAX from the foundation at a discounted rate.
Who does this affect?
This move impacts investors, particularly those interested in cryptocurrency and blockchain technology. It also affects the Avalanche Foundation itself, whose native token, AVAX, will see substantial purchasing. Anthony Scaramucci, crypto investor and founder of SkyBridge Capital, will also be involved as an advisor, which brings public attention to this project and is likely to influence its success.
Why does this matter?
This move has significant implications for the market, especially the AVAX token. The large-scale purchase of AVAX could potentially drive up demand and value for the coin. Furthermore, the engagement of recognized figures and reputable companies reflects growing institutional interest in cryptocurrencies, signaling to other investors about potential opportunities in the sector, which could further accelerate market growth.