Avalanche Foundation to Purchase Meme Coins as Part of Culture Drive

“These coins, often inspired by internet culture and humor, go beyond mere utility assets,” the foundation said.

AccessTimeIconDec 29, 2023 at 9:08 a.m. UTC
Updated Mar 8, 2024 at 7:14 p.m. UTC
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The Avalanche Foundation, whose grants and investments help support the development of the Avalanche blockchain ecosystem, is considering buying meme coins as part of a drive that recognizes the distinct niches of the cryptocurrency market after a surge in tokens such as bonk (BONK) almost single-handedly kickstarted activity on the Solana network earlier this month.

The selection process for the collection will be based on criteria such as the number of holders, liquidity thresholds, project maturity, principles of a fair launch and overall social sentiment, among other factors, the foundation said in a post on X.

"The Avalanche Foundation intends to start using Culture Catalyst to recognize and encourage the culture and fun symbolized by meme coins by purchasing select Avalanche-based meme coins to create a collection," it said. "This move complements the Avalanche Foundation's ongoing engagement across the Avalanche ecosystem, including NFTs, RWAs, and other types of cryptoassets, broadening its portfolio to embrace a more complete spectrum of possibilities."

Several Avalanche-based meme coins, including COQ, husky (HUSKY) and shibx (SHIBX), have gained as much as 25% in the past 24 hours, with the majority of these gains coming after Avalanche’s post, data from CoinGecko shows.

Meme coins are often considered a scammy part of the market among blockchain purists, but the success of this niche – led by the likes of dogecoin (DOGE) and shiba inu (SHIB) – could be starting to change the stigma associated with investing in such tokens.

In early December, a sudden surge in the price of bonk helped spur volumes on Solana-based decentralized exchanges (DEXs) ahead of Ethereum, the usual leader. Solana Saga phones sold out as they doled out BONK rewards to their owners, despite sales being moribund as recently as October.

The meme-coin frenzy spread to the Avalanche network in mid-December with the rise of hen-themed Coq Inu (COQ) and dog tokens such as kimbo (KIMBO). The riches followed: A single trader apparently acquired just over $450 worth of COQ shortly after its issuance and the amount has since ballooned to over $2.5 million, CoinDesk reported last week.

There is a cultural aspect to the sector's appeal, Avalanche said.

“These coins, often inspired by internet culture and humor, go beyond mere utility assets; they represent the collective spirit and shared interests of diverse crypto communities,” the post read.

Edited by Sheldon Reback.


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Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

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