Avalanche Foundation Gets Cheeky: Backs Meme Coins for “Culture and Fun”

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Avalanche Foundation Gets Cheeky: Backs Meme Coins for “Culture and Fun”
  • Avalanche Foundation to drive investment into Avalanche-based meme coins. 
  • The investment is to encourage the “culture and fun” symbolized by these assets. 
  • The value of several Avalanche-based meme tokens soared following the announcement.

On a rare occasion, the Avalanche Foundation recently announced plans to support Avalanche-based meme coin networks. The move, which garnered considerable attention, will see the Foundation drive significant investment into this class of digital assets.

In a December 29 post on social media platform X (formerly Twitter), Avalanche Foundation disclosed it would support select meme coins to create a collection. The end goal, Avalanche revealed, is to encourage the “culture and fun” symbolized by these assets. 

It bears mentioning that the majority of meme tokens are created for fun or entertainment and seldom have utility or offer any direct value to their holders. As explained by Avalanche, meme coins “go beyond mere utility assets”, they represent the collective spirit and shared interests of diverse crypto communities.

The investment in the meme coins will be channeled through the Foundation’s Culture Catalyst, a fund launched in 2022. Initially created to encourage and support innovation on Avalanche, the $100 million fund will now also go to supporting meme coins on the blockchain.  

However, Avalanche revealed the investment will be in select meme coins based on certain metrics outlined in the X post. These include the number of holders, liquidity thresholds, project maturity, principles of a fair launch, and overall social sentiment, among others. 

Importantly, the move by Avalanche highlights the increased interest meme coins saw towards the end of last year. Most of the buzz came on the Layer-1 network Solana, with tokens like BONK seeing a meteoric rise in value in very short periods. 

Following the announcement, several Avalanche-based meme coins saw a sporadic price increase. Projects like Coq Inu (COQ), SHIBAVAX (Shibx), Husky (HUSKY), LANDWOLF (LANDWOLF) on AVAX, and Bear Coin (BEAR) gained as much as 200% following the news at the time. 

However, the tokens have since declined amidst the recent volatility in the crypto market. Data from CoinMarketCap shows COQ is down 9.46% in the past 24 hours and has declined by 41% in the past seven days. Despite the recent slump, the token is up 189% in the past 30 days.

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