Avalanche ecosystem developer and accelerator Colony Lab said it will invest $10 million to support the long-term growth of the Avalanche network, Coindesk reported.
Colony Lab stated in its statement that it has purchased more than 500,000 AVAX worth $8 million in the last few months and said that these funds will be used to create a validator program that will benefit AVAX holders.
Colony Lab also announced that it will invest in the Colony Avalanche Index (CAI), a yield-generating token index within the Avalanche ecosystem that includes assets such as AVAX and Trader Joe's JOE.
Colony Lab CEO Elie Le Rest said:
“As we channel a $10 million investment into the Avalanche ecosystem, we are not only growing Colony Lab, but also strengthening the long-term potential of AVAX.
True blockchain growth comes from expanding use cases, and its technology reflects this vision by creating a more inclusive and customizable blockchain environment.
“We are excited to align with Avalanche's vision and are committed to sharing the rewards of our strategic move with the community.”
Following the news, Colony (CLY) increased by 7%.
*This is not investment advice.