Avalanche Foundation is about to start buying memecoins for the ‘culture’

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.

The Avalanche Foundation, responsible for overseeing the development of the Avalanche Network, has revealed plans to utilize its $100 million non-fungible token (NFT) incubator fund to purchase memecoins. This move is part of the “Culture Catalyst” initiative, a $100 million program launched in March 2022 with the original goal of funding promising NFT projects on the Avalanche Network. The foundation aims to enhance Avalanche’s position in supporting creativity, culture, and lifestyle enabled by blockchain technology.

As outlined in a post on X (formerly Twitter), the foundation will allocate the fund to acquire select Avalanche-based meme coins, forming a collection that recognizes and promotes the culture and enjoyment symbolized by meme coins. Avalanche argues that memecoins transcend mere utility assets, representing the collective spirit and shared interests of diverse crypto communities.

Observers on X highlighted the foundation’s intention to “max bid” on all memecoins within its chain. However, the foundation clarified that stringent criteria, including the number of holders, liquidity thresholds, project maturity, fair launch principles, and social sentiment, will guide the selection process for the collection.

One memecoin that has recently dominated the Avalanche narrative is Coqinu (COQ), a rooster-themed token. Despite acknowledging its inherent lack of intrinsic value and absence of a team or roadmap on its official website, Coqinu surged over 1.47 million percent between its inception on December 8 and its all-time high on December 20, according to DexScreener data.

Avalanche’s announcement aligns with a broader market trend, wherein memecoins are experiencing a frenzy across various blockchain networks capable of supporting smart contracts or inscriptions.