Avalanche Foundation to start buying memcoins for ‘culture’
The Avalanche Foundation – the non-profit organization that oversees the development of the Avalanche network – said it plans to buy memecoins with a 100 million NFT incubator fund.
In a post on December 29 by X (formerly Twitter), the Avalanche Foundation's new move will be part of the “Culture Catalyst” initiative – a $100 million program launched in March 2022 designed to support promising NFT projects on the network.
“This initiative seeks to enhance Avalanche and support the many new forms of innovation, culture and lifestyle that blockchain enables.
The foundation says it will achieve this by using the funds to purchase “select Avalanche-based meme coins to create collections,” to “recognize and promote the culture and entertainment represented by meme coins.”
Last year, the Avalanche Foundation launched a program called Culture Catalyst, which aims to empower innovators, inspire innovation, and expand the adoption of blockchain. This initiative seeks to better position Avalanche to develop and support many new forms of innovation,…
— Avalanche (@avax) December 29, 2023
Avalanche says memecoins “go beyond utility assets” and are representative of the “common spirit and shared interests of the diverse crypto community.”
“TLDR: Avalanche Foundation to buy memecoins,” wrote a viewer on X.
Another X user commented, “We will be auctioning off all memecoins on our chain at the highest level.”
Avalanche has opened the floodgates with this announcement about its foundation buying memecoins.
There is no reason to hide anymore. There's no real kick to it that green-lights other chains to get memecoins back clearly.
— BowTiedNightOwl (@BowTiedNightOwl) December 29, 2023
However, no obsolete memecoin can be added to the base pool, as Avalanche explains that strict selection criteria can be applied to all portfolio additions.
“The selection process of this group is based on several key criteria, including the number of holdings, liquidity limit, project maturity, fair start principles and overall social sentiment, among others.”
The memecoin that has dominated the Avalanche narrative in recent weeks is a chicken-themed token called Coquinu (COQ) — which can also be understood as a not-so-subtle reference to phallic.
The token is not inherently worthless, the coin has “no intrinsic value” and has gone out of its way to clearly state on its official website that it has neither a team nor a roadmap.
Despite this, the token has risen more than 1.47 million percent since its debut on December 8 and peaked on December 20, according to DexScreener data.
Avalanche's announcement comes amid widespread frustration in the market for memecoins on nearly every blockchain network capable of supporting smart contracts or scripts.
RELATED: Trader Wins $1.69M in 5 Days After Gambling $226K on Solana memecoin
One trader was able to turn $450 into a guaranteed profit of $1.5 million.
One trader traded $COQ and turned $454 into $2.19M in 2 weeks, a 4827x profit!
This trader spent 17.26$AVAX($454) to buy 4.86T $COQ at 7 addresses, then sold 4.61T $COQ for 32,251$AVAX($1.26M) and 259K $USDC.
Currently holding 250B $COQ($700K) and profit is ~$2.19M. pic.twitter.com/arsaX6Uey8
— Lookonchain (@lookonchain) December 19, 2023
According to on-chain data from blockchain data service Lookonchain, the trader used 17.26 AVAX ($454) to buy $4.86 trillion in COQ across 7 different wallets.
A week later, traders sold 4.61 trillion COQ for 32,251 AVAX – $1.26 million at the time and 259,000 USD Coin (USDC).
The trader is still sitting on 250 billion COQ, which is $318,300 at the current price.
NFT Creator: J1mmy.eth once released 420 Bored Monkeys… and had $150M worth of NFTs
