The Avalanche Foundation, a nonprofit organization overseeing the development of the Avalanche Network, has revealed plans to utilize its $100 million nonfungible token (NFT) incubator fund to purchase meme coins.
This strategic move is part of the foundation’s “Culture Catalyst” initiative, initially launched in March 2022 with the primary aim of funding promising NFT projects on the Avalanche Network.
The “Culture Catalyst” initiative is designed to position Avalanche as a hub for creativity, culture, and lifestyle fostered by blockchain technology.
The foundation intends to achieve this by deploying its fund to acquire select Avalanche-based meme coins, thereby curating a unique collection that celebrates the culture and fun embodied by these coins.
Avalanche argues that meme coins transcend mere utility assets, representing the collective spirit and shared interests of diverse cryptocurrency communities.
The foundation is committed to actively participating in the meme coin market, with plans to engage in max bidding for all meme coins on its network.
However, it’s important to note that not all meme coins will find a place in the foundation’s collection.
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Avalanche has established strict criteria for selecting meme coins, including the number of holders, liquidity thresholds, project maturity, adherence to fair launch principles, and overall social sentiment.
One meme coin that has gained significant attention on the Avalanche Network recently is Coqinu (COQ), a rooster-themed token known for its humorous and explicit approach to its lack of intrinsic value, team, and roadmap.
Surprisingly, COQ witnessed an astonishing surge of over 1.47 million percent in value between its inception on December 8 and its all-time high on December 20, as reported by DexScreener data.
Avalanche’s decision to enter the meme coin market comes amidst a broader market frenzy for meme coins across various blockchain networks capable of supporting smart contracts.
Remarkably, one trader managed to turn a $450 investment into over $1.5 million in realized profit.
This trader acquired 4.86 trillion COQ tokens with 17.26 Avalanche tokens, ultimately selling 4.61 trillion COQ for 32,251 AVAX, worth $1.26 million, just one week later.
The trader currently holds 250 billion COQ tokens, valued at $318,300 at the current market prices.
In conclusion, the Avalanche Foundation’s foray into meme coins reflects its commitment to embrace and support the evolving culture and creativity enabled by blockchain technology, even in unconventional and often speculative corners of the cryptocurrency space.
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