The Avalanche Foundation prepares to invest in the memecoin market:
- The Avalanche Foundation uses its NFT incubation fund to invest in memecoins.
- This initiative, called “Catalyst of Culture,” aims to encourage culture and entertainment related to meme tokens.
- The selection for these investments includes numerous criteria.
The “Catalyst of Culture” initiative by the Avalanche Foundation
The Avalanche Foundation, which manages and oversees the Avalanche blockchain, plans to invest in memecoins using its $100 million NFT incubation fund.
Launched in March 2022, this incubation program, named “Culture Catalyst,” aims to fund promising NFT and DeFi projects on the Avalanche network. The goal is to better position Avalanche to “cultivate and support new forms of creativity, culture, and lifestyle” within the Web3.
The cultural value of Memecoins
According to Avalanche, memecoins represent more than just assets, but rather shared passions that unite different communities in the cryptocurrency market.
“These coins, often inspired by Internet culture and humor, go beyond simple utility assets; they represent the collective spirit and shared interests of diverse crypto communities.“
Avalanche stated
A recent example is the token Coqinu (COQ), a rooster-themed memecoin that has experienced a significant increase despite its lack of declared intrinsic value.
Furthermore, a trader recently turned an investment of just over $450 into over $2.19 million in just two weeks, achieving a performance of approximately 4200x.
The criteria for selecting memescoins
The Avalanche Foundation has established rigorous selection criteria for memecoins to be added to its collection.
These criteria include “number of holders, liquidity thresholds, project maturity, fair launch principles, and social sentiment.”
As you may have gathered, this dynamic highlights the cultural and community importance of memecoins in the crypto ecosystem.
