Avalanche ‘s Memecoin Investment

Avalanche Foundation, a non-profit organization that oversees the development of the Avalanche Network, has announced plans to invest in memecoins using its $100 million non-fungible token (NFT) fund. In a post shared on the X platform on December 29, the foundation said that this new initiative would be implemented as part of its “Culture Catalyst” initiative.

You might like: New Member of Avax Ecosystem, What is Coq Inu (COQ)?

What is Culture Catalyst?

Culture Catalyst is a $100 million program launched in March 2022 that aims to fund promising NFT projects on the network.

Avalanche:

This initiative is a step towards our goal of supporting the forms of creativity, culture, and lifestyle that blockchain provides. By selecting Avalanche-based memecoins, the foundation aims to recognize and promote the culture and entertainment represented by memecoins.

Last year, the Avalanche Foundation launched Culture Catalyst, a program aimed at empowering creators, sparking innovation, and propelling the adoption of blockchains. This initiative seeks to better position Avalanche to cultivate and support the many new forms of creativity,…

— Avalanche 🔺 (@avax) December 29, 2023

Avalanche argues that memecoins are more than just an asset, and have become a representation of the collective spirit and shared interests of diverse crypto communities.

A post by an X user who is an Avalanche follower shared the following:

“Avalanche Foundation will be buying memecoins. We will be offering the highest bid for all memecoins on our chain.“

Avalanche has opened the floodgates with this announcement about the foundation buying memecoins

There is no reason to sneak around anymore. There hasn’t been any real blowback, which greenlights other chains to openly back memecoins

— BowTiedNightOwl (@BowTiedNightOwl) December 29, 2023

However, the Avalanche Foundation has stated that a worthless memecoin cannot be added to the foundation’s collection, and that strict selection criteria will be applied for all additions.

What are the Criteria for the Avalanche Foundation?

The criteria are based on a variety of fundamental criteria, including:

• A priority selection process
• Number of holders within the community
• Liquidity thresholds
• Project maturity
• Fair launch principles
• General social sentiment

Avalanche will be forming its collection taking into account all of these factors.

One memecoin that has recently come to prominence on the Avalanche network is Coqinu (COQ), a rooster-themed token. The token openly states that it is inherently worthless, and on its official website, it states that the coin “has no intrinsic value” and does not have any team or roadmap.

To visit COQ website click here.

However, according to DexScreener data, the token saw a more than 1,47 million percent increase in value from its launch on December 8 to its all-time high on December 20.

Avalanche’s announcement comes amid a market-wide frenzy for memecoins on every blockchain network that supports smart contracts or scripts.

In the process, one investor managed to make a profit of $1.5 million, starting with $450.

A trader turned $454 into $2.19M in 2 weeks by trading $COQ, a gain of 4827x!

This trader spent 17.26 $AVAX($454) to buy 4.86T $COQ through 7 addresses, then sold 4.61T $COQ for 32,251 $AVAX($1.26M) and 259K $USDC.

Currently holding 250B $COQ($700K), the profit is ~$2.19M. pic.twitter.com/arsaX6Uey8

— Lookonchain (@lookonchain) December 19, 2023

According to Lookonchain data, this investor used 17.26 Avalanche tokens ($454) to purchase 4.86 trillion COQ through seven different wallets. A week later, they sold 4.61 trillion COQ for 32,251 AVAX, worth $1.26 million. The investor is currently holding 250 billion COQ, worth $318,300.