Avalanche Foundation to back meme coins only on its blockchain, new criteria says

2024-01-24 01:38:32

Avalanche Foundation updates surprising investment strategy, now exclusively supporting assets minted only on the Avalanche blockchain.

As per a recent blog post, Avalanche Foundation has announced its exclusive support for meme coins minted solely on the Avalanche blockchain. This surprising move, detailed in the blog update, signifies a departure from conventional investment approaches.

According to the eligibility criteria, meme coins should have total liquidity of at least $200,000, with more than 50 liquidity providers. Although even recently launched meme coins can participate in the program, their fully diluted market capitalization should be at least $1 million, while an average daily trading volume should not be lower than $100,000 on “Avalanche eco DEXes [decentralized exchanges] for at least two weeks.”

“As such, the eligibility criteria outline the bare minimum characteristics that a community coin should possess in order to be taken into consideration. Meeting the eligibility criteria does not imply that the Foundation will support a coin.”

Avalanche Foundation

A notable revelation in the update is the foundation’s decision not to back any meme coin existing in the broader market, but to exclusively focus on those coins that “natively exist only within the Avalanche eco.” The foundation also asserted its right to exercise sole discretion in determining the coins to be included in the Culture Catalyst program and to modify eligibility criteria as deemed appropriate.

While Avalanche Foundation claims to have already deployed capital into community coins through its Culture Catalyst program, specific details about these meme coins have not been disclosed publicly.

According to data from CryptoSlate, only one meme coin in the Avalanche eco, Coq Inu (COQ), experienced nearly a 14% price increase after the update was published. However, it remains unclear whether Avalanche Foundation has chosen to back this particular project, considering the presence of other meme coins minted on the Avalanche blockchain, such as Husky (HUSKY) and Shibx (SHIBX).

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