YEREVAN (CoinChapter.com) — Avalanche (AVAX) set new rules for its previously announced memecoin buyup, which we’ll discuss in a minute. The organization that supports the Avalanche blockchain released an “eligibility framework” Tuesday that puts some guardrails around the initial plan.
New Rules For Avalanche Memecoin Eligibility
To be eligible for the Avalanche Foundation’s meme coin initiative, coins must be Avalanche-native and not controlled by their creators, per the three-page ‘rules book.’ The criteria exclude tokens reserved for creators’ teams or those replicated on other blockchains.
The Foundation embraces the full spectrum of creativity, culture, and camaraderie in the blockchain space, and broadly views meme coins, NFTs, and similar tokens created by the community for culture and engagement as ‘community coins
said the Avalanche team.
The Foundation is also cautious about tokens predominantly held by a few (“whales”), those without security vetting, or those launched sans whitelists.
Meeting these criteria doesn’t ensure purchase, but there are minimums: 2,000 holders with the top 100 owning under 60% of supply, over $200,000 liquidity from 50+ providers, a minimum $1 million market cap, and $100,000 daily trading volume over two weeks as of January 2024.
What Is The “Culture Catalyst”
The Avalanche Foundation has announced an initiative to purchase meme coins as part of their “Culture Catalyst” program in late December 2023, leveraging a $100 million fund to support this program.
The aim is to “recognize and encourage” the unique culture and fun symbolized by memecoins. This move aligns with the Foundation’s broader strategy to diversify across various crypto asset categories, including NFTs, Real World Assets (RWAs), and other crypto asset types.
As mentioned, the criteria for selecting memecoins for this collection are based on several factors such as the number of holders, liquidity thresholds, project maturity, principles of a fair launch, and overall social sentiment. This eyebrow-raising decision could be a way to extend the reach and influence of the Avalanche ecosystem, as well as to engage with the lively and rapidly evolving memecoin sector.
Some notable meme coins in the Avalanche ecosystem, such as Coq Inu (COQ), have gained significant traction and market capitalization.
This initiative by the Avalanche Foundation reflects a growing interest in the more playful and culturally significant aspects of the cryptocurrency world beyond the technical and financial aspects typically associated with blockchain technologies.
