prompts

Several Avalanche-based memecoins are up more than 100% today after the blockchain network’s Foundation revealed plans to start buying this class of digital assets through its Culture Catalyst initiative.

Memecoin purchase goals

In a Dec. 29 post on social media platform X (formerly Twitter), Avalanche Foundation said it would purchase “select Avalanche-based meme coins to create a collection” that encourages the “culture and fun” symbolized by these assets.

The Foundation claimed memecoins “go beyond mere utility assets; they represent the collective spirit and shared interests of diverse crypto communities.”

However, the Foundation would not be purchasing just any kind of memecoin as it outlined strict selection criteria that will be applied to its potential acquisitions. It said:

“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 Foundation concluded that the move aligns with ongoing engagements across its ecosystem, involving non-fungible tokens, real-world assets, and other digital assets deployed on the blockchain network.

The Avalanche Foundation launched the Culture Catalyst initiative in March 2022 with $100 million in funding to empower creators, spark innovation, and propel the adoption of blockchains.

Avalanche-based memecoins rally

Several Avalanche-based memecoins prices have reacted positively to news of the Foundation’s intention.

Data from Coingecko shows that Coq Inu, Shibx, Husky, Landwolf on AVAX, and Bear gained as much as over 200% in the past 24 hours, most of which came after the news.

Generally, memecoins have historically faced skepticism from traditional blockchain enthusiasts due to their speculative nature and their perceived lack of utility. However, some of these assets, including Dogecoin, Shiba Inu, Bonk, and Pepe, have gone mainstream and have helped attract more people into the blockchain industry.

Thus, these assets play an integral yet unacknowledged role in the broader cryptocurrency industry.