The Avalanche Foundation announced it would invest in memecoin using funds from its Culture Catalyst fund to establish a portfolio.
Avalanche Foundation will invest in memecoin
According to an announcement posted on the morning of December 29, the Avalanche Foundation, the organization behind the Avalanche blockchain (AVAX), announced plans to establish a memecoin investment portfolio. This decision comes after Avalanche Foundation realized the importance of this segment to their ecosystem.
Investment money for this category will be spent from Culture Catalyst, a $100 million incubation fund that Avalanche announced in March 2022, with the goal of promoting new initiatives and content to enrich the ecosystem Ecological.
Avalanche Foundation said that in addition to asset segments such as gas tokens, DeFi, Real World Asset (RWA) and NFTs, memecoins have become an integral part of the cryptocurrency industry. These coins often originate from "internet trends and community humor", representing the collective culture of the cryptocurrency community.
To support this trend, the Avalanche Foundation announced it will use a portion of Culture Catalyst funds to create a memecoin portfolio on Avalanche, adding to other asset classes such as NFTs, RWA and popular coins other.
The memecoin selection criteria will be evaluated based on the number of investors, available liquidity, level of project development, fair launch principles and popularity on social networks.
Concluding the announcement, the Avalanche Foundation once again reaffirms its commitment to promoting important technological and cultural initiatives that serve the Web3 community.
In the last three months of 2023, the cryptocurrency market recovery has seen many layer-1 blockchains record significant growth, with the main impetus coming from memecoin speculation. Prominent projects include Bonk (BONK) on Solana and Coq Inu (COQ) on Avalanche, helping many investors earn millions with capital starting from just a few hundred dollars.
This can also be considered another trend step of the Avalanche Foundation. In September 2023, before the appearance of the social network SocialFi friend.tech on layer-2 Base, Avalanche had a similar project called Stars Arena, promoted by many important figures in the leadership of the Avalanche Foundation promote on Twitter. However, after a few days of operation, Stars Arena was attacked twice, causing damage to $3 million in user assets. Although the problem was later fixed, investor confidence in the project has declined.
Chart of AVAX
The AVAX token price did not change much after the announcement that the Avalanche Foundation would invest in memecoin, instead adjusting with the market on the morning of December 29.
4h chart of the AVAX/USDT pair on Binance at 03:56 AM on December 29, 2023 (UTC)