Avalanche Foundation Sets New Criteria for Memecoin Funding: Includes CoqInu
Summary:
The Avalanche Foundation has set new criteria for memecoins applying to its $100 million “Culture Catalyst” fund. The foundation requires memecoins to be at least one month old and meet specifics such as contractual severance, low whale ownership, and high liquidity. Despite some market skepticism, the fund has already begun investing in these "community coins", with rooster-themed CoqInu (COQ) being the most prominent.
To be considered for a part of a $100 million fund, memecoins based on the Avalanche blockchain are required to meet a newly announced set of criteria from the Avalanche Foundation. This includes the requirement of the memecoins being at least a month old. This comes as part of an attempt by the Avalanche Foundation to encompass what they term “community coins.”
On January 23rd, the Avalanche Foundation distributed a set of flexible conditions for the memecoins they would select for their $100 million “Culture Catalyst” fund. Initially, this fund was intended to be invested in artists creating non-fungible tokens (NFTs). In accordance with the new terms, all fitting meme tokens must be contractually severed, boast low whale ownership concentration, and hold high liquidity levels, along with other prerequisites.
While many of the established terms are adaptable, the Avalanche Foundation underlined firm stipulations. Eligibility minimums include 2,000 distinct holders, a minimum of $200,000 liquidity from 50 separate providers, and the project's existence must span at least one month.
Conventionally, memecoin projects do not obscure the inherent lack of value, given that most are conceived for entertainment purposes. This perspective aligns well with memecoin enthusiasts.
However, the late December disclosure of the Avalanche Foundation's extended fund scope to include memecoins received skeptical reactions from market observers, many criticizing the Foundation's "desperate and unbecoming" course of action. In 2023, the Avalanche Foundation launched the Culture Catalyst with aims to empower creators, encourage innovation, and accelerate blockchain adoption.
Despite the criticisms, the Avalanche Foundation disclosed that capital infusions into "community coins" had already begun courtesy of the Culture Catalyst program. A rooster-themed token known as CoqInu (COQ) has been the most prominent memecoin to highlight Avalanche's recent narrative. This token, with a market cap of $75 million and ranking as the most traded memecoin on the Avalanche network, makes it clear that it bears no inherent value.
Published At
1/24/2024 9:13:26 AM
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