Recently the Avalanche Foundation announced plans to purchase a number of Meme coins:
The Avalanche Foundation, whose grants and investments help support the development of the Avalanche blockchain ecosystem, is considering buying meme coins as part of a drive that recognizes the distinct niches of the cryptocurrency market after a surge in tokens such as bonk (BONK) almost single-handedly kickstarted activity on the Solana network earlier this month (
Avalanche Foundation to Purchase Meme Coins as Part of Culture Drive).
I am a fan of Avalanche and am very pleased to observe the technological development of this blockchain, and of course the price increase of AVAX token at the end of 2023. I also really like memes in the crypto market, but is it really appropriate for the Avalanche Foundation to use its budget to buy meme coins?
I understand that the impact of meme coins is really big, we have seen what DOGE and SHIB have done in the 2020 cycle: more people know crypto and more money flows into this market. Avalanche Foundation also wants this to happen to Avalanche ecosystem, but I think the budget should be used for core technology development or funding really potential new projects to provide more good dapps for users.
What do you think about this action of Avalanche Foundation? Do you think meme coin investment will boost the growth of Avalanche blockchain in 2024-2025?
2024.01.23 Update: Understanding the community's interest, Avalanche Foundation has released more information about its memecoin purchases. I believe this action has been carefully calculated to bring maximum benefit to the development of the Avalanche ecosystem and AVAX token.
Only meme coins native to the Avalanche blockchain will be considered, according to new guidelines
[1]:
- At least 2,000 holders, of whom the top 100 own less than 60% of supply
- More than $200,000 in liquidity supplied by at least 50 providers
- At least a $1 million market cap
- See at least $100,000 in daily average trading volume over two weeks
[1]
Avalanche Foundation Puts Rules on Plans to Buy Meme Coins
Update: 2024.03.16The Avalanche Foundation selected five meme coins for its initial investment: Coq Inu, Gecko, Kimbo, NoChill, and Tech. These coins are all native to the Avalanche ecosystem, and the Foundation hints at potentially including more in the future.