The Avalanche Foundation recently announced a $100 million “Culture Catalyst” fund focused in part on investing in meme coins native to the Avalanche blockchain. Meme coins, centered around themes like dogs or jokes, are controversial due to high volatility and frequently being conduits for pump and dump schemes or other frauds.
- The Avalanche Foundation created a $100 million “Culture Catalyst” fund to invest in meme coins and other “community coins” on the Avalanche blockchain
- They have released eligibility criteria for the meme coins they will consider buying, including requirements around fair launch, community ownership, liquidity, market cap, trading volume, etc.
- Meme coins must be at least 1 month old and native to the Avalanche blockchain in order to qualify
- The Foundation believes meme coins have value related to culture, community, and engagement, though many have criticized this viewpoint
- Specific meme coins bought so far have not been disclosed, but the Foundation says they have already started deploying capital into some coins
Nonetheless, the Foundation believes such coins provide value by boosting culture, community engagement, and fun on Avalanche.
They have devised eligibility criteria that meme coins must satisfy before the Foundation will invest, including rules intended to verify legitimate projects and community ownership. Specific requirements cover areas like fair launch, concentrated ownership, liquidity, market presence, and longevity on the blockchain.
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
For example, eligible meme coins:
- Must be at least 1 month old,
- Have over 2,000 holders with the top 100 owning less than 60% of supply,
- 50+ liquidity providers contributing over $200k,
- Minimum $1 million fully diluted market cap
- 2 week average daily trading volume above $100k on Avalanche DEXs.
The Foundation also emphasizes flexibility, noting meeting all criteria does not guarantee investment.
While they have not disclosed specific assets purchased so far, the Foundation shared they already started deploying capital into select community coins from the mega fund. One prominent example is Coq Inu, a meme coin themed around a rooster that commands a $75 million market cap.
Reactions to the Avalanche Foundation’s meme coin plans run the gamut from enthusiasm to derision. Supporters believe it will drive further culture, users, and buzz to the ecosystem.
Critics see it as “unbecoming” for the stewards of a top 10 blockchain to buy into such speculative assets of questionable intrinsic value. Nonetheless, the Foundation seems committed to embracing meme coins as part of a “full spectrum” vision for Avalanche participants.