The AVAX ecosystem will receive $10 million in support from the Avalanche Accelerator Colony Lab. As part of this collaboration, Colony Lab will build a network validator. It will also invest in an index that tracks leading Avalanche projects. Following this news, the price of Colony Lab’s native token, CLY, skyrocketed.
Colony Lab announced its Avalanche investment, CLY took flight!
Colony Lab, an Avalanche ecosystem developer and accelerator, announced that it will invest $10 million to support the long-term growth of the network. The company has purchased more than 500,000 AVAX tokens worth $8 million in the last few months. Now, he said, these funds will be used to establish a validator program that benefits AVAX holders. A validator is a participant in a proof-of-stake (PoS) blockchain network that helps maintain security and confirms new transactions sent to the blockchain. Validators do this by staking their tokens and often earning rewards.
Colony Lab will also invest in the Colony Avalanche Index (CAI), a token index that generates returns on the Avalanche ecosystem, which includes assets such as AVAX and Trader Joe’s (JOE). It will distribute the fees it receives from mints or redemptions to Colony Lab’s CLY token stakers. Its rewards from both its initial and upcoming validator programs will be directed to the CLY staker community. This news has not yet had an impact on the AVAX price. However, it skyrocketed the price of Colony’s native token, CLY. CLY price skyrocketed following the news. While the token was trading at $0.1135 during the day, it suddenly jumped to $0.1617.
CLY daily price chart. Source: CoinMarketCap“We are also developing the long-term potential of AVAX!”
As you follow on Kriptokoin.com, Avalanche has been frequently on the agenda lately with its partnerships. This investment came after these partnerships. Colony Lab CEO Elie Le Rest made some statements on the subject. In this context, Rest said, “As we invest $10 million in the Avalanche ecosystem, we are not only growing Colony Lab, but also developing the long-term potential of AVAX.” He also shared the following evaluations:
Avalanche understands that real blockchain growth comes from expanding its use cases. Additionally, its technology reflects this vision by creating a more inclusive and customizable Blockchain environment. We are excited to align with the Avalanche’s vision. We are fully committed to sharing the rewards of this strategic move with our community.
Meanwhile, the investment news sent Colony’s native token, CLY, soaring, while leaving the price of AVAX unaffected. Avalanche (AVAX) was trading at $21 at press time, down 4% on a daily basis. However, AVAX is sitting above a 19.5% gain on its weekly chart.
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