Avalanche Foundation to Invest in Memecoins: Trader Turns $450 into $1.5M
Summary:
The Avalanche Foundation plans to invest in memecoins through its $100 million Culture Catalyst NFT incubator fund. The initiative is aimed at fostering creativity and culture within the blockchain industry. However, there will be rigorous selection criteria for potential additions to the portfolio. Amid this announcement, a trader has managed to convert $450 into over $1.5 million through trading COQ, a memecoin on the Avalanche network.
The Avalanche Foundation — the nonprofit in charge of the Avalanche Network's development, intends to invest in memecoins through its $100 million NFT incubator fund. The announcement, occurring on Dec. 29 on the platform X (previously Twitter), is part of their "Culture Catalyst" initiative — a $100 million program rolled out in March 2022 to invest in potential NFT projects on their network. The initiative aims to position Avalanche favorably to foster and back new forms of creativity, culture, and lifestyle that blockchain technology makes possible. To achieve this, the foundation plans to use the fund to acquire a collection of chosen meme coins on the Avalanche network, to foster and salute the culture and enjoyment that these coins signify.
Avalanche expressed that memecoins are more than mere utility assets; they embody the collective spirit and common interests of various crypto communities. Reactions to the news varied with one observer on X summing it up as "Avalanche Foundation to buy memecoins," and another user remarked about the foundation now openly backing memecoins.
However, the foundation clarified that there would be rigorous selection standards for any potential portfolio add-ons. Factors used in the selection process include the number of holders, liquidity proportions, project development, fair launch principles, and general social sentiment among others. The Avalanche-related memecoin gaining most traction lately is a rooster-themed token known as Coqinu (COQ), having a tongue-in-cheek reference to a phallic shape. Despite the token openly stating its lack of intrinsic value on its official site, it experienced a more than 1.47 million percent surge between its launch on Dec. 8 and its peak on Dec. 20, as per DexScreener data. This news emerged amid a global scramble for memecoins on nearly every blockchain network that supports smart contracts or inscriptions.
A success story among the frenzy includes a trader who successfully turned $450 into over $1.5 million of realized profit by trading COQ, using 17.26 AVAX ($454) to buy 4.86 trillion $COQ through 7 different wallets. The trader then sold 4.61 trillion COQ for 32,251 AVAX, worth around $1.26 million at that time, and 259,000 USD Coin (USDC). Furthermore, the trader still owns 250 billion COQ, currently valued at $318,300. The news once again highlights the potential returns, as well as risks, associated with trading in memecoins.
Published At
12/29/2023 8:53:14 AM
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