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Avalanche Foundation announces support for meme coins

Avalanche

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TL;DR

  • Avalanche Foundation supports meme coins via its Culture Catalyst Fund for fun and culture.
  • Meme coin selection criteria include factors like holders and social sentiment.
  • Avalanche meme coins surged, then dipped due to crypto market swings.

The Avalanche Foundation has made a surprising announcement regarding its plans to support meme coins built on the Avalanche blockchain. In a social media post on December 29, the foundation disclosed its intention to back select meme coins to foster the “culture and fun” associated with these assets. 

This move has garnered significant attention in the crypto community, signaling a growing interest in meme coins and their unique appeal.

Investment Through the Culture Catalyst Fund

The Avalanche Foundation intends to allocate substantial investment into meme coins through its Culture Catalyst Fund, originally established in 2022 to promote innovation on the Avalanche blockchain. Initially, the fund was focused on encouraging and supporting projects that enhance the Avalanche ecosystem. 

However, with this new announcement, a portion of the $100 million fund will now be dedicated to supporting meme coins.

The foundation has outlined specific criteria that will guide its selection of meme coins to support. These criteria include the number of holders, liquidity thresholds, project maturity, adherence to principles of a fair launch, and overall social sentiment, among other factors. 

This systematic approach ensures that the foundation’s investments are directed toward meme coins with the potential for genuine community engagement and long-term viability.

Meme coins go beyond utility

Meme coins have gained notoriety for their humorous and often satirical nature. Unlike traditional cryptocurrencies, meme coins are primarily created for entertainment and do not typically offer their holders direct utility or substantial value. 

Avalanche Foundation emphasizes that meme coins represent more than just utility assets; they symbolize diverse crypto communities’ collective spirit and shared interests. The foundation aims to contribute to the crypto space’s vibrant culture and sense of fun by supporting meme coins.

The decision by Avalanche to invest in meme coins underscores the growing interest and popularity of these assets in the crypto world. Towards the end of the previous year, meme coins experienced a surge in attention, particularly on the Layer-1 network Solana. 

Coins like BONK witnessed rapid and significant increases in value within remarkably short timeframes, demonstrating the potential for meme coins to capture the imagination of investors and traders alike.

Price movements following the announcement

After Avalanche Foundation’s announcement, several Avalanche-based meme coins experienced sporadic price surges. Notable projects such as Coq Inu (COQ), SHIBAVAX (Shibx), Husky (HUSKY), LANDWOLF (LANDWOLF), and Bear Coin (BEAR) saw price gains of up to 200% shortly after the news broke. 

The market responded positively to the foundation’s commitment to support meme coins, reflecting the potential for meme coins to generate excitement and attract investment.

Market volatility and subsequent declines

However, it’s important to note that the cryptocurrency market is volatile, and meme coins are no exception. Many of these meme coins experienced price declines in the days following the initial surge. 

For instance, COQ is currently down 9.46% in the past 24 hours and has witnessed a 41% decrease in value over the past week. Despite these recent setbacks, COQ remains up by an impressive 189% over the past month, highlighting the unpredictable nature of meme coin markets.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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