Avalanche Offers $1M Avax to Back Memecoin

On March 21, the foundation announced the "Memecoin Rush", Offering $1 million in Avalanche tokens as an incentive for traders and liquidity providers of Avalanche-based community tokens.

The first phase of the program will begin on decentralized finance (DeFi) platforms SteakHut and Trader Joe. Avalanche said the platforms will "incentivize trading and increase liquidity strategies" for community tokens within the network.

According to the announcement, Liquidity will be provided to memecoins Coq, NoChill, Tech and Kimbo paired with the AVAX token The pool’s liquidity providers provide incentives.

In addition, Avalanche will Coq, Kimbo, NoChill, Gec, Tech, Husky, Meow, Kong, Meat and Kingshit are listed as beneficiaries of the incentive program coffers.

While crypto community figures like Ethereum co-founder Vitalik Buterin have been critical of memecoin traders, Avalanche appears to have a different perspective.

On December 29, it announced that its $100 million Cultural Catalyst Fund will be used to purchase memecoin assets based on the network.

Avalanche stated that memecoin represents "the collective spirit and common interests of different crypto communities" and claimed that they " beyond mere utilitarian assets”.

It also emphasized that The plan aims to position its blockchain Networks that support new forms of creativity and culture.

On January 24, Avalanche clarified that Not all memecoins will receive 1 billion dollar fund. Common eligibility requirements for the foundation include contract abandonment, low whale ownership concentration, and high liquidity levels.

The Avalanche Foundation also said the project should be at least a month old.

Memecoin on the Solana network reached what one community member called its “peak of depravity” in March of this year, with the token project raising more than $100 million in just three days.

Memecoin founders made millions from March 15-18 through a controversial fundraising method called a "pre-sale."

With this crowdfunding model, investors send Solana (SOL) tokens to a wallet address in hopes of receiving a weighted distribution of the tokens upon listing. However, there is no guarantee that investors will receive the tokens in exchange for SOL.