The Avalanche Foundation, known for overseeing the Avalanche Network’s development, is taking a significant leap into the meme coin market. This venture involves dedicating a substantial part of its $100 million NFT incubator fund to invest in meme coins built on the Avalanche blockchain.
Investing in Meme Coin Culture
In a recent announcement on December 29, the foundation emphasized its commitment to supporting artistic expression, cultural identity, and lifestyle choices through blockchain technology. This decision to invest in Avalanche-based meme coins is a part of their broader initiative, titled “Culture Catalyst,” launched last year. The project aims to empower content creators, spark innovative ideas, and promote the adoption of blockchain technologies.
Criteria for Meme Coin Selection
Not all meme coins will be eligible for the foundation’s investment. To be considered for inclusion in their portfolio, these meme coins must meet certain criteria. These include having a substantial number of holders, sufficient liquidity, project maturity, adherence to fair launch principles, and generating positive social sentiment.
Surge of Coqinu (COQ) on Avalanche
One particular meme coin, Coqinu (COQ), a rooster-themed token on Avalanche, has seen a dramatic increase in value, despite its admission of having no inherent value, development team, or roadmap. COQ experienced a staggering 1.47 million percent rise in value over a brief period.
This trend reflects the growing popularity of meme coins across various blockchain networks. For instance, a trader turned a $450 investment in COQ into over $1.5 million in profit, as per on-chain data from Lookonchain.
Favoring Networks Like Avalanche and Solana for Meme Coin Trading
The rise of Coqinu and other meme coins on Avalanche is indicative of a broader trend where traders are increasingly favoring networks like Avalanche and Solana for meme coin trading. The preference for these networks is driven by lower transaction fees and faster speeds compared to other platforms, such as Ethereum.
The Avalanche Foundation’s foray into meme coins showcases a recognition of the cultural significance and potential of these digital assets within the cryptocurrency community. Their strategic investment in Avalanche-based meme coins is a testament to the evolving landscape of blockchain technology and its impact on culture and digital expression.