On 14th March, the Avalanche Foundation, responsible for maintaining the Avalanche blockchain, announced its investment in five memecoins.
The tokens, selected based on specific criteria, mark the foundation’s first step into such investments, with more planned.
Remarking on the same, a report by Avalanche Foundation, noted,
“Community coins have become vital Web3 touchstones today. They represent the fun, spirit, uniqueness, and interests of diverse crypto communities.”
It further added,
“The Avalanche Foundation aims to recognize these qualities and support these communities.”
Selected tokens and trading surge
The report further stated the selected tokens included Kimbo (KIMBO), themed around dogs, Coq Inu (COQ), representing chickens, Gecko (GEC), featuring geckos, as well as the technology-focused joke token TECH, and Avax has no chill (NOCHILL).
These tokens, introduced in recent months, have shown significant trading, with daily volumes in the millions. Following the disclosure by Avalanche, these memecoins surged by 60%, defying the broader market downturn.
The report further emphasized,
“Each community coin held by the Foundation meets the Foundation’s established eligibility guidelines for community coin projects.”
According to DEXTools data, there has been a noticeable increase in trading volumes on Avalanche tokens, coinciding with a surge in the creation of new meme tokens.
The overall impact
This uptick suggests a growing anticipation for the next token selection by the Avalanche Foundation.
The report emphasized,
“The Avalanche Foundation is currently evaluating ERC-404 tokens following their promising debut as a novel token class that the Avalanche community is helping to pioneer.”
Additionally, post-announcement, Trader Joe’s trading volumes rose from $53 million to $65 million, including all tokens traded.
Amongst all, COQ emerged as one of Avalanche’s standout meme tokens in December, amidst a frenzy surrounding meme coins.
Shortly after its launch, a trader invested just over $450 in COQ and subsequently turned it into over $2.5 million within a few weeks. This success spurred a wave of hopeful memes deployed on the network, aiming to replicate COQ’s meteoric rise.
