COQ and WOLF Surge as Avalanche Foundation Jumps on Memecoin Bandwagon
Avalanche Foundation announced today that it would buy memecoins on the network, leading to a rise in the value of several Avalanche-based memecoins. The foundation claims memecoin represents the culture of fun on the blockchain.
Uno…
Avalanche-based memecoins got a major boost on Friday after the Avalanche Foundation announced it would start buying memecoins on the network. The foundation stated that these tokens constitute an aspect of the blockchain culture.
Following the announcement, several memecoins on Avalanche saw their prices increase. The leading memecoin Coq Inu recorded a 22% surge in value, while Shibavax rose 7%. Low-cap tokens such as Landwolf on Avax and Husky increased by 282% and 124%, respectively. Kimbo also jumped 52%.
Avalanche Foundation to Buy Memecoins
In a post on X today, the foundation said it would use part of its Culture Catalyst fund to acquire meme coins to form a collection. This move is in recognition of their significance and what they represent.
“Memecoins have carved out a significant niche in the cryptoasset landscape. 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,” it said.
The Culture Catalyst program is a $100 million fund launched in 2022 to support innovative projects on the Avalanche blockchain. So far, it has focused on categories such as gas tokens, DeFi tokens, Real World Assets (RWAs), NFTs, stablecoins, and governance coins.
However, the foundation does not plan to buy everything. memecoin on the network. It stated that there would be several criteria to determine eligible projects. These will include liquidity threshold, project maturity, number of holders, social sentiment, and principles of fair launch, among others.
Crypto Community React
Mixed reactions trailed the announcement, with some seeing it as an endorsement of memecoins. Memecoins have long been a controversial topic among crypto enthusiasts.
Purists consider them to be a distraction from the actual use cases of blockchain technology. They have also attracted criticisms for being pump-and-dump schemes and how their trading frenzy could cause transaction costs to increase.
However, some see their trading value as speculative assets with the potential for massive upsides. For this group, the foundation announcement is an endorsement that could encourage other blockchains to support memecoins.
“Avalanche has opened the floodgates with this announcement about the foundation buying memecoins. There is no reason to sneak around anymore. There hasn’t been any real blowback, which greenlights other chains to openly back memecoins.”
Despite the mixed reactions, the significance of memecoins cannot be ignored. These tokens have played a crucial role in fueling the resurgence of DeFi activity on several smart contract networks, including Avalanche and Solana, over the past few months.
Nevertheless, whether Avalanche Foundation’s move will benefit the blockchain remains to be seen. Usually, meme coins become worthless tokens for anyone who holds them for too long.
