The Avalanche Foundation, announcing its intention to invest in meme coins back in December as part of a broader digital culture initiative, has now made its first selections. What was once seen as a niche joke in the cryptocurrency world is rapidly evolving into a significant sector that reflects the digital ethos of various blockchains. With major foundations now directly participating in the growth of meme tokens, their status is shifting.
The Avalanche Foundation has allocated capital to five Avalanche-based tokens based on specific criteria, marking its inaugural meme coin investments. The selected tokens include KIMBO, themed around dogs; COQ, featuring a chicken motif; GEC, characterized by geckos; TECH, a technology-themed token; and NOCHILL, emphasizing the lack of chill in the Avax ecosystem.
These tokens, all issued in recent months, have witnessed significant trading activity, with daily cumulative volumes reaching millions of dollars. Following the announcement of Avalanche’s investment, these meme coins experienced spikes in value, surging up to 60%, even amidst a broader market downturn.
Data from DEXTools indicates an increase in trading volumes for Avalanche tokens, coinciding with a rise in the creation of new meme tokens. It seems that many are hopeful of their project becoming the next selection by the Avalanche Foundation.
Describing these meme tokens as “community coins,” Avalanche emphasized their importance as touchstones within the Web3 ecosystem. These tokens embody the fun, spirit, uniqueness, and interests of diverse crypto communities, according to the foundation.
One notable success story among Avalanche’s meme coin investments is COQ, which gained significant traction in December. A trader managed to turn a modest investment into millions of dollars in just a few weeks, sparking widespread interest in the meme coin space.
While meme coins have often been viewed skeptically by traditionalists in the blockchain community, investments from reputable organizations like the Avalanche Foundation are beginning to challenge this perception. As meme tokens gain legitimacy through such endorsements, the stigma associated with investing in them may gradually fade away.
