Supporting the Cultural Aspect of Memecoins
The Avalanche Foundation, which oversees the development of the Avalanche Network, plans to allocate a $100 million NFT incubator fund to purchase promising memecoins and support their NFT projects. This move is part of the foundation’s “Culture Catalyst” initiative launched in March 2022.
The initiative aims to recognize and support NFT projects with cultural value on the Avalanche Network. The foundation believes that memecoins symbolize the collective spirit of crypto communities and wants to encourage that aspect.
Not all memecoins will qualify for the foundation’s collection due to stringent selection criteria. These include the number of holders, liquidity, project maturity, fair launch principles, and positive social sentiment.
Massive Surge of COQ Memecoin
Coqinu (COQ), a memecoin on the Avalanche Network, saw a massive surge in value recently despite having no intrinsic value or development team. This highlights the frenzy for memecoins across blockchain networks fueled by speculation.
A trader turned a $450 investment into over $1.5 million worth of COQ tokens by utilizing multiple wallets. The trader still retains COQ tokens valued at $318,300, demonstrating the volatility of memecoins.
NFT Market Showing Recovery Signs
The NFT market has shown signs of recovery with an overall 32% increase in monthly trading volume to $405 million in October, up from $306 million the previous month. The Avalanche Foundation hopes its NFT incubator fund will further stimulate creativity and cultural value within the NFT and memecoin space.>