Large cryptocurrency investors and a key adviser in the crypto space have poured millions into the Avalanche smart contract blockchain’s native utility token, anticipating a price surge following recent corporate treasury announcements and Avalanche exchange-traded fund (ETF) submissions.
Notable crypto investigator and World Liberty Financial (WLFI) adviser, Ogle, initiated a $2.2 million long position with 10x leverage, wagering on the Avalanche (AVAX) token’s price growth.
The position was opened at an entry price of $33.88 and will be liquidated if the AVAX token drops below $15.50, as reported by blockchain data platform Lookonchain.
The WLFI adviser made his leveraged wager shortly after agricultural technology firm AgriFORCE Growing Systems announced a strategic shift to establish a $550 million AVAX corporate treasury.
The company plans to rebrand as AVAX One and aims to acquire a total of $700 million in AVAX tokens for its long-term strategy. Following the AVAX treasury announcement, the company’s shares surged over 200% at Monday’s opening, as reported earlier by Cointelegraph on Tuesday.
The company’s advisory board will be chaired by Anthony Scaramucci, founder of SkyBridge Capital and notable crypto investor, alongside Brett Tejpaul, head of Coinbase Institutional.
Whales are also increasing their exposure to AVAX. Whale wallet “0xb2ca” initiated an AVAX long position with 5x leverage worth $17.2 million, generating over $900,000 in unrealized profit within nine hours.
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AVAX still 76% down from all-time high despite rising corporate adoption
Following the latest treasury announcement, the AVAX token has increased over 10.8% in the last 24 hours, trading at $34.45 at the time of writing.
Despite the recent surge in corporate adoption, the AVAX token remains over 76% below its all-time high of $146, which was set almost four years ago on Nov. 21, 2021, TradingView data indicates.
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The Avalanche Foundation — a nonprofit organization behind the development of the Avalanche blockchain network — is also in talks with investors to raise a $1 billion crypto treasury vehicle to acquire AVAX tokens at discounted rates, as reported by the Financial Times on Thursday, citing insiders familiar with the discussions.
This capital raise will include two potential deals, the first of which aims to secure $500 million through a private placement led by New York-based blockchain investment firm Hivemind Capital.
Additionally, crypto-focused asset management firm Grayscale has filed an updated Form S-1 with the US Securities and Exchange Commission for its spot Avalanche ETF as of Aug. 25, as reported by Cointelegraph.
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