Avalanche says it will utilize its $100 million NFT incubator initiative to start investing in select
memecoins, which it says encourages the “culture and fun” brought about by meme-derived tokens.
Avalanche Foundation — the nonprofit organization that oversees the development of the Avalanche Network — says it’s planning to buy memecoins with its $100 million NFT incubator fund.
In a Dec. 29 post to X (formerly Twitter), the Avalanche Foundation said the new move will form
part of its “Culture Catalyst” initiative — a $100 million program launched in March 2022 initially designed to fund promising NFT projects on the network.
“This initiative seeks to better position Avalanche to cultivate and support the many new forms of
creativity, culture, and lifestyle that blockchain enables,” it said, explaining the initiative.
The foundation said it will achieve this by using the fund to purchase “select Avalanche-based meme coins to create a collection,” to “recognize and encourage the culture and fun symbolized by meme coins.”
Avalanche claimed that memecoins “go beyond mere utility assets” and stand as a representation of the “collective spirit and shared interests of diverse crypto communities.”
“TLDR: Avalanche Foundation to buy memecoins,” wrote an observer on X.
“We will be max bidding all memecoins on our chain,” another X user quipped.
However, not any old worthless memecoin can be added to the foundations’ collection,
with Avalanche clarifying there will be stringent selection criteria applied to all potential portfolio additions.
“The selection process for this collection is based on several key criteria, including the number of
holders, liquidity thresholds, project maturity, principles of a fair launch, and overall social sentiment, among other factors.”
The memecoin that has dominated the Avalanche narrative in recent weeks is a rooster-themed token
called Coqinu (COQ) — which can also be understood as a not-so-subtle reference to something rather phallic.
The token does not shy away from the fact that it is inherently worthless, going out of its way to
explicitly state that the coin holds “no intrinsic value” and has no team nor roadmap on its official website.