Avalanche Foundation to Invest in Memecoins
Avalanche Foundation announced its intention to use funds from the Culture Catalyst fund to establish a memecoin investment portfolio.
Avalanche Foundation to Invest in Memecoins. Image: Avalanche
In a statement released on the morning of December 29, the organization behind the Avalanche blockchain (AVAX), Avalanche Foundation, declared plans to create a memecoin investment portfolio after recognizing the significance of this segment within the ecosystem.
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
The investment capital will be sourced from the Culture Catalyst, a $100 million seed fund unveiled by Avalanche in March 2022 to foster new initiatives and enrich the ecosystem with additional content.
Avalanche Foundation highlighted that alongside familiar asset segments like gas fee tokens, DeFi, Real World Assets (RWA), and NFTs, memecoins have become an integral part of the cryptocurrency space. Originating from "internet trends and collective humor," these coins are seen as representative of the cultural ethos of the crypto community.
To bolster this trend, Avalanche Foundation announced its intention to allocate a portion of the Culture Catalyst funds to establish a memecoin investment portfolio on Avalanche, complementing other held asset groups such as NFTs, RWAs, and popular cryptocurrencies.
The Foundation stated that the criteria for selecting memecoins would be evaluated based on investor base, current liquidity, project development stage, fair launch principles, and social media popularity.
In conclusion, Avalanche Foundation reaffirmed its commitment to advancing significant technological and cultural initiatives to serve the Web3 community.
The recovery of the cryptocurrency market in the final quarter of 2023 has witnessed notable growth among layer-1 blockchains, driven in part by memecoin speculation. Key examples include Bonk (BONK) on Solana and Coq Inu (COQ) on Avalanche, which have enabled many investors to profit millions from modest investments.
This move by Avalanche Foundation can be viewed as another trend-catching endeavor. In September 2023, amid the rise of the SocialFi platform friend.tech on layer-2 Base, Avalanche launched a similar project named Stars Arena, promoted by prominent figures within the Avalanche Foundation leadership on platforms like Twitter. However, shortly after its launch, Stars Arena suffered two attacks, affecting $3 million in user assets.
Despite subsequent recovery efforts, investor confidence in the project waned.
Following Avalanche Foundation's announcement of memecoin investments, the AVAX token price showed minimal fluctuation, adjusting in line with the broader market trends on the morning of December 29.
4-hour chart of the AVAX/USDT pair on Binance at 09:40 AM on December 29, 2023.
