Research

Avalanche AVAX token sale sells out

Messari

Jul 22, 2020 ⋅  3 min read

On Jul. 15, 2020 Avalanche Foundation Limited conducted their first public (AVAX) token offerings. In 4.5 hours the team sold all 72 million tokens listed raising $42 million, however as the token offering was oversubscribed the team is currently in the process of returning funds The sale was set to take place on Jul. 8, 2020 but was scrapped due to what the team labeled a “sophisticated DDoS attack” that shut down the offering midway through.

A total of 72 millionAVAX tokens were sold exclusively to accredited non-US investors, with the first two token pools selling out in around 71 minutes. Participants in this first round had access to purchase AVAX at $0.50 per token with a mandatory year-long vesting period or AVAX priced at $0.85 per token with no vesting period. The largest pool of tokens labeled as Staking Round Two offered participants the option to purchase AVAX at $0.50 per token with a mandatory 18 month-long vesting.

Following the reported DDoS attack the AVA team leveraged media coverage of the event and apparent growth in demand for their offering to increase their second token offering pool from the initial five million tokens at $0.50 per token to 60 million still at $0.50 per token. This increased offering pool provided $27.5 million more in funding compared to the initial $2.5 million second-round funding goal cap. According to the AVA labs team they expect to launch the Avalanche mainnet sometime between July and August of this year.

Who are the players involved

  • Emin Gün Sirer (Project Lead),
  • John Wu (President of (Ava Labs)
  • Avalanche foundation limited (Token offering entity)

Who has a stake?

By the numbers

  • The sale follows a seed sale that raised $5,940,000 with the sale of 18 million tokens at $0.33 a token (2.5% of total supply). As well as a private sale that raised $12,450,000 with the sale of 24,9000,00 tokens as a price of $0.5 per token (3.46% of total token supply).
  • 72,000,000 AVAX tokens (20% of mainnet token supply) will be offered thought the sale from July 15th to July 28th
  • Of the 360,000,000 AVAX Main net tokens 173,052,000 tokens (48.07% of mainnet token supply) have already been designated for the avalanche foundation, community developers, airdrops, and strategic advisors.
  • Pending the completion of an audit of the July 15th token sale, the Avalanche team will have raised between $54,390,000 and $58,590,000 to date.

Biggest questions yet to be answered

  • In the era of “Ethereum Killers”, how will AVA separate themselves from the pack.
  • How Strong is the tech? AVA boasts a throughput of over 4,500 TPS and a new “metastable mechanism” consensus protocol that will be put to the test by both the development and consumer base following its mainnet launch.

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