In an announcement on X, the Avalanche Foundation has expressed its intention to invest in memecoins from its ecosystem. What do we know?
The Avalanche Foundation is interested in memecoins
This night, the Avalanche Foundation behind Avalanche (AVAX) made a surprising announcement, indicating its intention to start acquiring memecoins based on its ecosystem:
Last year, the Avalanche Foundation launched Culture Catalyst, a program aimed at empowering creators, sparking innovation, and propelling the adoption of blockchains. This initiative seeks to better position Avalanche to cultivate and support the many new forms of creativity,…
– Avalanche (@avax) December 29, 2023
To achieve this, the foundation intends to use Culture Catalyst, a $100 million initiative launched last year to support the Web3 transition in the arts and culture sector.
The Avalanche Foundation believes that memescoins should be part of the Culture Catalyst program, as they represent “the collective spirit and shared interests of diverse crypto communities”. As such, this initiative would “recognize and encourage culture and fun” through Avalanche-based memecoins.
However, it is also made clear that not all projects will have a place within the program, and that selection criteria will be established:
“The selection process for this collection is based on several key criteria, including the number of holders, liquidity thresholds, project maturity, fair launch principles and general social sentiment, among other factors. The Avalanche Foundation is dedicated to supporting diverse and culturally significant initiatives, establishing its position as an adaptable and inclusive participant in the Web3 space. “
While many memecoins, not to say shitcoins, alternately experience their moment of glory with each bullish phase of the crypto market, one has to wonder whether such an announcement isn’t aimed rather at promoting the creation of such tokens on Avalanche in an attempt to boost its attractiveness.
While memecoins may at least have the merit of attracting newcomers to the Web3 ecosystem, this is often done for the wrong reasons, through the expectation of quick gains from projects that regularly resemble Ponzi pyramids.
The image of blockchain technologies as a whole can suffer as a result, and this is a challenge to which the Avalanche Foundation will have to pay close attention in its new project.
