The Requirements for Investing in Meme Coins
The Avalanche Foundation, a non-profit organization supporting the Avalanche ecosystem, has announced the eligibility criteria for meme coins to be purchased through its $100 million Culture Catalyst fund. While the foundation had previously mentioned purchasing these tokens, it had not specified the requirements for eligibility.
To qualify for the meme coin purchasing program, a project must have a minimum of 2,000 unique holders, with the top 100 token holders owning less than 60% of the total supply. Additionally, the project should have a liquidity of at least $200,000 and 50 or more liquidity providers, unless a significant portion of liquidity has been burned.
Furthermore, the meme token should only exist on the AVAX chain and have a fully diluted market cap exceeding $1 million, with a trading volume of over $100,000 on AVAX decentralized exchanges for a minimum of two weeks.
The Significance of Meme Coins
The foundation acknowledges the value of meme coins, emphasizing the culture, community engagement, and spirit they foster, which goes beyond their humor and virality. These tokens have gained popularity due to their unique characteristics and the communities they attract.
However, meeting the eligibility criteria does not guarantee automatic investment from the foundation. It reserves the right to select the coins for inclusion in the Culture Catalyst program based on its discretion and additional criteria.
Hot Take: Avalanche Foundation Sets Rules for Meme Coin Purchases
The Avalanche Foundation has outlined the requirements for meme coins seeking to participate in its purchasing program. These criteria include the number of unique holders, distribution of token ownership, liquidity, lifespan, and market cap. While meme coins have gained significant traction in the crypto space, with their community-oriented appeal, the foundation’s aim is to ensure that selected projects fulfill specific guidelines. This move demonstrates the foundation’s commitment to supporting and fostering the growth of the Avalanche ecosystem while considering the unique attributes of meme coins.
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