Avalanche Foundation is about to start buying memecoins for the ‘culture’

0


Avalanche Foundation — the nonprofit organization that oversees the development of the Avalanche Network — says it’s planning to buy memecoins with its $100 million NFT incubator fund.

In a Dec. 29 post to X (formerly Twitter), the Avalanche Foundation said the new move will form part of its “Culture Catalyst” initiative — a $100 million program launched in March 2022 initially designed to fund promising NFT projects on the network.

“This initiative seeks to better position Avalanche to cultivate and support the many new forms of creativity, culture, and lifestyle that blockchain enables,” it said, explaining the initiative. 

The foundation said it will achieve this by using the fund to purchase “select Avalanche-based meme coins to create a collection,” to “recognize and encourage the culture and fun symbolized by meme coins.”

Avalanche claimed that memecoins “go beyond mere utility assets” and stand as a representation of the “collective spirit and shared interests of diverse crypto communities.”

“TLDR: Avalanche Foundation to buy memecoins,” wrote an observer on X.

“We will be max bidding all memecoins on our chain,” another X user quipped. 

However, not any old worthless memecoin can be added to the foundations’ collection, with Avalanche clarifying there will be stringent selection criteria applied to all potential portfolio additions.

“The selection process for this collection is based on several key criteria, including the number of holders, liquidity thresholds, project maturity, principles of a fair launch, and overall social sentiment, among other factors.”

The memecoin that has dominated the Avalanche narrative in recent weeks is a rooster-themed token called Coqinu (COQ) — which can also be understood as a not-so-subtle reference to something rather phallic. 

The token does not shy away from the fact that it is inherently worthless, going out of its way to explicitly state that the coin holds “no intrinsic value” and has no team nor roadmap on its official website.

Avalanche’s most popular memecoin COQ makes no allusions to having any intrinsic value. Source: Coqinu

Despite this, the token surged more than 1.47 million percent between its inception on Dec. 8 and its all-time high on Dec. 20, per DexScreener data.

Avalanche’s announcement comes in the wake of a market-wide frenzy for memecoins across almost every blockchain network capable of supporting smart contracts or inscriptions.

Related: Trader gambles $226K on Solana memecoin, hits $1.69M in 5 days

One trader managed to turn $450 into just over $1.5 million of realized profit.

According to on-chain data from blockchain data service Lookonchain, the trader used 17.26 AVAX ($454) to buy 4.86 trillion $COQ through 7 different wallets.

One week later, traders sold 4.61 trillion COQ for 32,251 AVAX — worth $1.26 million at the time and 259,000 USD Coin (USDC).

The trader is still sitting on 250 billion COQ, which is worth $318,300 at current prices.

NFT Creator: J1mmy.eth once minted 420 Bored Apes… and had NFTs worth $150M