Avalanche Foundations Starts Memecoin Purchase, Announces Eligibility Criteria
Avalanche Foundation has announced the eligibility criteria for memecoins that it would purchase as part of the Culture Catalyst program. Fair launch, security, and sufficient liquidity are part of the essential requirements.
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Less than two months after the initial announcement that it would buy memecoins as part of its Culture Catalyst program, Avalanche Foundation is already living up to its promise. The organization said it had bought some tokens and announced criteria for eligible projects.
Avalanche Foundation is responsible for supporting and incentivizing development on the blockchain. It started focusing on meme coins after the meme coin mania on the network boosted activity and attracted more developers.
According to the blog post, the criteria exist to identify projects with stability and growth potential. The announcement stated that it bought some community coins through the Culture Catalyst program. Although the foundation did not disclose which tokens it bought, there was a general increase in the value of Avalanche-based tokens led by AVAX.
Eligibility Criteria
While there are tons of meme coins on Avalanche, only a few will be eligible for the program, given the strict criteria released. The requirements include fair launch, whale protection, snipe bot resistance, and high liquidity.
According to the foundation, eligible memecoins must be fairly launched, with developers renouncing ownership of the contract and burning or locking up liquidation after creating the project. Such coins must also have zero allocation reserved for team members and have precautions to prevent whale accumulation.
There is also an emphasis on the Avalanche community benefiting from the meme coin before it can be eligible. This is why one of the conditions is that the project must be snipe bot resistant and give whitelist opportunities and a head start to active participants in the Avax ecosystems.
Additionally, only projects with verifiable security standards and audited contracts are eligible. Other requirements include the coin must have a minimum of 2000 holders; the top 100 holders must not control more than 60% of supply; a minimum of 50 liquidity providers, at least $200,00 in liquidity; and a fully diluted market cap of at least $1 million.
Trading volume must be an average of $100,000 on Avalanche dexes over two weeks, and the meme coin must have existed for at least one month.
Avalanche Tokens Performance
The news represents a positive development for memecoins based on Avalanche. Most of the memecoins have struggled in recent weeks. The leading memecoin Coq Inu is now up 3.7% in 24 hours, HUSKY gained 29%, DOGwifCROCS is up 22%, and CINU rose 9%.
However, some memecoins still performed poorly in the last 24 hours. KIMBO and BINGO fell 6% each, while Bawls Onu is down 12%.
Meanwhile, Avalanche native token AVAX is up 5% today and trades above $30. This makes it one of the best-performing major-cap cryptocurrencies today. But the token has also fallen substantially since the year started, dropping 26% year-to-date.
