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Meme Scheme: How Avalanche is Choosing Meme Coins to Purchase

Meme Scheme: How Avalanche is Choosing Meme Coins to Purchase

The Avalanche Foundation uses a ‘Culture Catalyst’ fund to invest in meme coins. This is an explanation concerning their token-picking strategy.

The Avalanche Foundation has disclosed its suitability criteria for determining the meme coins to be included in its portfolio. This comes after revealing its $100M Culture Catalyst program in late December.

Avalanche Foundation Deploy Assessment Program to Explore High Growth Investment

According to the foundation, the criteria seeks to analyze tokens that ‘indicate growth potential, steadiness, and dedication to fair practices.’ Some requirements include a ‘fair unveiling’ that does not reserve the founders’ tokens and a reduced supply concentration among crypto whales.’

In a blog post, Avalanche Foundation noted that divulging the suitability criteria sought to articulate its values and offer directions to the community. This foundation is a not-for-profit organization managing the Avalanche network’s development.

A meme coin is a common form of cryptocurrency unveiled around a recent event or internet meme. Examples include Solana’s BONK, Dogecoin (DOGE), and Ethereum’s Shiba Inu (SHIB). These kinds of coins do not have straightforward utility, and most experts will typically tell people that they are significantly speculative.

Avalanche Investment Plans Dismissed as Wasteful

In December, several people slammed Avalanche’s investment plans by saying they are a risky waste of resources. Nevertheless, the foundation is certain that meme coins are a robust community value and engagement source. Besides, it has categorized them under ‘community coins,’ a wider investment umbrella.

For community coins to be considered for Avalanche’s investment, they should have at least 2000 unique holders with a diluted market capitalization of at least $1M. Further, the top 100 owners cannot jointly keep more than 60% of the overall supply.

 The coins should also average $100,000 in everyday trading volumes across two Avalanche decentralized exchanges (DEXs) for at least two weeks. In the meantime, the project must have a total liquidity of at least $200000 and at least 50 liquidity providers.

Avalanche Gamble Inspires HUSKY Meme Coin

The blog post revealed that the Avalanche Foundation has deployed some capital into specific community coins as part of the program. A representative failed to stipulate the tokens that were purchased.

Additionally, they noted that the Avalanche Foundation’s undeployed assets available for the culture catalyst are worth more than $90M. Following the program’s announcement in December, some Avalanche-founded meme coins, such as Husky Avax (HUSKY), increased by more than 60% on the day. Since then, the coin has lost most of its gains.

Editorial credit: FellowNeko / Shutterstock.com

Written by
Don Blankenship

Don Blankenship, a crypto writing maestro, captivates with his astute analyses of blockchain phenomena. Synthesizing the dynamic world of digital currencies into insightful prose, Don's articles are a beacon for enthusiasts and professionals. His expertise establishes him as a definitive voice in crypto journalism.

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