Avalanche Foundation buys memes – is this a good decision?

[MrSpasybo]

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: 2024.03.16
The 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.

• Avalanche Foundation Discloses First Batch of Meme Coin Holdings

[Uruhara]

I think this is not a bad idea. Because some people will even use news like this as a narrative that it is time for meme coins from the AVAX network to rise to the surface. Even after the last 24 hours of the news, it turned out that several memecoins from the Avax network, such as COQ, Husky (HUSKY) and Shibx (SHIBX), had increased by 25% based on information from the source you linked. and yes, I think we as market players must make the most of this moment.

Because Avax, however, will have greater growth, especially after they have big partners such as asset tokenization plans related to large companies like JP Morgan. Well, that is a signal that the increase in Avax will continue. And Meme coins on the network should also have their moment in this regard.

I think this information from you OP is very useful. Because now I know what to look for regarding Avax. I thank you OP.

[MrSpasybo]

I think this is not a bad idea. Because some people will even use news like this as a narrative that it is time for meme coins from the AVAX network to rise to the surface.
Because Avax, however, will have greater growth, especially after they have big partners such as asset tokenization plans related to large companies like JP Morgan. Well, that is a signal that the increase in Avax will continue. And Meme coins on the network should also have their moment in this regard.

Thank you for your opinion!
I like market analysis and information about developments in technology, in dapps, in funding, new CEX listings or new  Avalanche Foundation's partnerships will be valuable to me.

I don't understand meme FOMO and it's nearly impossible to predict its impact on ecosystems. I think memes should be injected at the end of uptrend to attract more investor attention, promote token buying behavior and create a market peak in that cycle. Currently, perhaps we are only at the starting point, pumping memes right now may negatively affect the development of the entire market or at least promote short-term speculative behavior of investors.

[Uruhara]

I think this is not a bad idea. Because some people will even use news like this as a narrative that it is time for meme coins from the AVAX network to rise to the surface.
Because Avax, however, will have greater growth, especially after they have big partners such as asset tokenization plans related to large companies like JP Morgan. Well, that is a signal that the increase in Avax will continue. And Meme coins on the network should also have their moment in this regard.

Thank you for your opinion!
I like market analysis and information about developments in technology, in dapps, in funding, new CEX listings or new  Avalanche Foundation's partnerships will be valuable to me.

I don't understand meme FOMO and it's nearly impossible to predict its impact on ecosystems. I think memes should be injected at the end of uptrend to attract more investor attention, promote token buying behavior and create a market peak in that cycle. Currently, perhaps we are only at the starting point, pumping memes right now may negatively affect the development of the entire market or at least promote short-term speculative behavior of investors.

I completely agree with you. Well, that seems like the more appropriate thing to do. Namely saving the Meme moment for the end. Because after all, meme hype if created early or in the middle will only bring disappointment from some of the unlucky community who bought at the top and sold too late.

So even in the rising market cycle or Bullish market, we are used to the Memecoin hype when the bullish market is almost over or even at the beginning of the bearish market. Like what happened to Shiba in the ethereum ecosystem which occurred at the beginning of the bear market. And Avax doesn't seem to be rushing into this either.

Luckily Avax Foundation hasn't done that either and it's just a plan. So I and the community don't know for sure they will include it. And yeah I hope it does get saved for the end. Because currently I prefer growth that occurs slowly like now. And it looks fundamentally healthier and stronger. Meme coins only have to be used as ammunition at the end when the community starts to quiet down and the market is not enthusiastic. So pumping it up with the passion of Meme coin back then might have helped revive the community.

[MrSpasybo]

I completely agree with you. Well, that seems like the more appropriate thing to do. Namely saving the Meme moment for the end. Because after all, meme hype if created early or in the middle will only bring disappointment from some of the unlucky community who bought at the top and sold too late.

So even in the rising market cycle or Bullish market, we are used to the Memecoin hype when the bullish market is almost over or even at the beginning of the bearish market. Like what happened to Shiba in the ethereum ecosystem which occurred at the beginning of the bear market. And Avax doesn't seem to be rushing into this either.

Luckily Avax Foundation hasn't done that either and it's just a plan. So I and the community don't know for sure they will include it. And yeah I hope it does get saved for the end. Because currently I prefer growth that occurs slowly like now. And it looks fundamentally healthier and stronger. Meme coins only have to be used as ammunition at the end when the community starts to quiet down and the market is not enthusiastic. So pumping it up with the passion of Meme coin back then might have helped revive the community.

Hope Avalanche Foundation members know what they are doing and what needs to be done to meet the expectations of AVAX community. I do not know the exact budget status and spending plans of Avalanche Foundation, I just hope that Avalanche will have strong developments and support AVAX token price increase in bullrun 2024-2025. Although a bit pragmatic, I am still an investor, my goal in this market is profit ^^

If memecoins are good for Avalanche marketing, then I will support Foundation in this decision, after all marketing is very important to attract dapps, users and investors 

[masudginanjar]

This Avalanche coin provides various unique features and is able to create also the Ethereum Virtual Machine (EVM) and now reading about COQ, husky (HUSKY) and shibx (SHIBX) which at the time the article was written rose up to 25%.
I am sure that COQ, husky (HUSKY) and shibx (SHIBX) coins will continue to be able to survive on the Avalanche network because usually these Meme coins have a big contribution to the community on the Avalnche network.
The simple thing is that when the COQ, husky (HUSKY) and shibx (SHIBX) coins continue to be traded, there are various kinds of arbitrage on CEX and DEX then the higher the transaction fees used from the Avalanche coins used, if it continues to be consistent like this then the COQ coin , husky (HUSKY) and shibx (SHIBX) could be pioneers for other Meme coins.

[KryptoBull]

This Avalanche coin provides various unique features and is able to create also the Ethereum Virtual Machine (EVM) and now reading about COQ, husky (HUSKY) and shibx (SHIBX) which at the time the article was written rose up to 25%.
I am sure that COQ, husky (HUSKY) and shibx (SHIBX) coins will continue to be able to survive on the Avalanche network because usually these Meme coins have a big contribution to the community on the Avalnche network.
The simple thing is that when the COQ, husky (HUSKY) and shibx (SHIBX) coins continue to be traded, there are various kinds of arbitrage on CEX and DEX then the higher the transaction fees used from the Avalanche coins used, if it continues to be consistent like this then the COQ coin , husky (HUSKY) and shibx (SHIBX) could be pioneers for other Meme coins.

Man oh man, I think you misunderstood this topic. We are discussing the Avax Foundation's use of funds to buy meme coins, not the future and role of memes on Avalanche or for AVAX token.

Anyway, meme trend is inevitable and important for every ecosystem from the perspective of transaction fees and FOMO wave. I would consider this decision by the Avax Foundation to be marketing, as they are also extremely talented and smart in this market. They know what is best for the Avalanche's future 

[masudginanjar]

-

Man oh man, I think you misunderstood this topic. We are discussing the Avax Foundation's use of funds to buy meme coins, not the future and role of memes on Avalanche or for AVAX token.

https://www.coindesk.com/markets/2023/12/29/avalanche-foundation-to-purchase-meme-coins-as-part-of-culture-drive/
Have you read this article from Coindesk ?
This article from MrSpasybo 

Anyway, meme trend is inevitable and important for every ecosystem from the perspective of transaction fees and FOMO wave.

Yeps, this meme coin trend is very rapidly circulating everywhere, almost all coins that have a blockchain themselves must have a token meme.
1 Ethereum with Shiba and Pepe token
2 Binance Smart Chian with Floki Token
3 Solana with Bonk Token
4 Avalanche with Husky and COQ Inu token

And many more for example, this might be created only for silliness but when viewed in terms of development if this token meme is made to increase the interest of investors entering the main coin network.
The main coin for Husky and COQ Inu is Avalanche, so that all investors who are interested in buying it must buy the main Avalanche coin so that when trading at the dex there is ready for transaction gas costs.

[MrSpasybo]

Yeps, this meme coin trend is very rapidly circulating everywhere, almost all coins that have a blockchain themselves must have a token meme.
1 Ethereum with Shiba and Pepe token
2 Binance Smart Chian with Floki Token
3 Solana with Bonk Token
4 Avalanche with Husky and COQ Inu token

And many more for example, this might be created only for silliness but when viewed in terms of development if this token meme is made to increase the interest of investors entering the main coin network.
The main coin for Husky and COQ Inu is Avalanche, so that all investors who are interested in buying it must buy the main Avalanche coin so that when trading at the dex there is ready for transaction gas costs.

On the Avalanche network, all transaction fees are burned^[1].

+1 Yeah, transaction fees on the Avalanche network will be burned, meaning the more transactions, the more AVAX token will be burned, helping to reduce circulating supply, reduce selling pressure and support the AVAX token price. Thus, the meme coins wave developing on Avalanche has positive media value and helps increase the number of transactions and speed up the AVAX token burning. We have another basis to support Avalanche Foundation decision 💪💪💪
[1] Avalanche burned $16.7 million of AVAX over last week, 10 times more than the week before

[masudginanjar]

On the Avalanche network, all transaction fees are burned^[1].

Oh my God, is it true that you said?
I don't know this before, I thought I was a transaction fee from Avalanche not burned.
Can you give an example of proof that each of the transaction fees is burned?
Sent to Wallet which are any of the burning of this Avalanche coin?

If it continues to be burned, until the maximum how many coins are from Avalanche's supply?
If it arrives at the end, the possibility of Avalanche coins can be lost from the market.

It seems that this will be a long discussion about Avalanche technology, because this Avalanche system turns out to be a lot of other etehreum virtual machine (EVM) coins. Amazing!

[MrSpasybo]

On the Avalanche network, all transaction fees are burned^[1].

Oh my God, is it true that you said?
I don't know this before, I thought I was a transaction fee from Avalanche not burned.
Can you give an example of proof that each of the transaction fees is burned?
Sent to Wallet which are any of the burning of this Avalanche coin?

If it continues to be burned, until the maximum how many coins are from Avalanche's supply?
If it arrives at the end, the possibility of Avalanche coins can be lost from the market.

It seems that this will be a long discussion about Avalanche technology, because this Avalanche system turns out to be a lot of other etehreum virtual machine (EVM) coins. Amazing!

You can refer to detailed information from AVAX about transaction fees:
“In order to prevent spam, transactions on Avalanche require the payment of a transaction fee. The fee is paid in AVAX. The transaction fee is burned (destroyed forever)^[1].”

According to Coinmarketcap, AVAX total supply = 720M tokens^[2].
Thus, at some point deflation will cause the number of AVAX to decrease over time. This depends on the number of transactions made on the network and the amount of fees burned.
[1] Avalanche Transaction Fee
[2] Coinmarketcap: Avalanche

[MrSpasybo]

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

[Hamza2424]

Haha, Sounds like the AVAX community is sleeping after having a look at the Avalance Foundation's decision to buy the meme, sounds like they are now not certain about the reliability haha Just kidding. Anyway I was expecting the good rally in AVAx but it was kind of Disaopinting experience. I 'm still holding my position on AVAX but seems like I wont hold it by judging the performance in few months through out the entire Bull Run.

[MrSpasybo]

Haha, Sounds like the AVAX community is sleeping after having a look at the Avalance Foundation's decision to buy the meme, sounds like they are now not certain about the reliability haha Just kidding. Anyway I was expecting the good rally in AVAx but it was kind of Disaopinting experience. I 'm still holding my position on AVAX but seems like I wont hold it by judging the performance in few months through out the entire Bull Run.

What a greedy investor ^^
AVAX price has recovered from $9 to $50 impressively, returning to Fibo 0.618 and showing the strength of the Avalanche project and ecosystem. I don't dare to expect anything more from AVAX, and I also believe that AVAX holders will also be satisfied with this recovery.

With Avalanche Foundation's dynamism and positivity through investing in memecoin and upgrading network speed to 100k tps^[1], I will be waiting for AVAX's new ATH in this cycle.
[1] Avalanche returns to speed racing: 100K tps

[Gurujebs]

Haha, Sounds like the AVAX community is sleeping after having a look at the Avalance Foundation's decision to buy the meme, sounds like they are now not certain about the reliability haha Just kidding. Anyway I was expecting the good rally in AVAx but it was kind of Disaopinting experience. I 'm still holding my position on AVAX but seems like I wont hold it by judging the performance in few months through out the entire Bull Run.

They know what they are doing, trust me when I said so. Take a look at what has been happening around Solana for a minute. The chain has been full of meme coins and more are still coming and a these is to revive the lifeless skeleton that FTX  has done on Solana and I feel is the same plans Avalanche is trying to do in other to give rise to Avax price  but it will not work because Solana is Solana and Avalanche is another name.


They didn't even thought of what will happen after because most of these coins that are intentionally pump, they do go down after a while. The funds they want to use to buy back these meme coins should have been added to foundation money and give to builders that are working on Avalanche chain for improvement.