Avalanche-based memecoins aiming to tap into a $100 million fund now face specific criteria, according to the Avalanche Foundation.
The Foundation, in a recent blog post dated January 23, introduced a set of guidelines for its memecoin selections within its “Culture Catalyst” fund.
Originally designed to support nonfungible token artists, the fund’s expanded scope now includes “community coins.”
To be considered eligible, meme tokens must meet various criteria.
These include having renounced contracts, limited ownership concentration among large holders (whales), and substantial liquidity levels.
While many criteria are flexible, the Foundation has established certain non-negotiable requirements.
These include a minimum of 2,000 unique holders, at least $200,000 in liquidity from 50 different providers, and a project existence of at least one month.
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Memecoins are known for their lack of intrinsic value, often created as a joke or for entertainment, which appeals to memecoin enthusiasts.
When the Avalanche Foundation initially announced its decision to include memecoins in its fund expansion in late December 2023, it faced skepticism from market observers, with some criticizing the move as “desperate and unbecoming.”
Despite the initial backlash, the Avalanche Foundation has revealed that it has already begun deploying capital into “community coins” through its Culture Catalyst program.
One notable memecoin that has gained prominence within the Avalanche ecosystem is Coq Inu (COQ), a token with a rooster theme.
Coq Inu boasts a market capitalization of $75 million and ranks as the most traded memecoin on the Avalanche network, according to DexScreener data.
In summary, the Avalanche Foundation has established a set of criteria for memecoins seeking a portion of its $100 million Culture Catalyst fund.
While memecoins are often considered whimsical and valueless, the Foundation has laid out specific requirements to ensure eligibility.
Despite initial criticism, the Foundation has already started investing in these “community coins,” with Coq Inu emerging as a notable player within the Avalanche network, commanding a substantial market capitalization.
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