- The Avalanche Foundation team presented updated rules for selecting memecoins for investment.
- According to the established criteria, the project’s market capitalization must exceed $1 million, and liquidity – $200,000.
- Another selection criterion is the number of memecoin holders. There must be at least 2,000.
The non-profit organization Avalanche Foundation, which previously announced investments in memecoins as part of the Culture Drive program, presented new project selection criteria.
Foundation representatives noted the high value of memecoins for society due to user engagement and the culture they create. The team set criteria for selecting projects that could potentially receive Avalanche Foundation support in the future.
According to the established rules, the memecoin’s liquidity must be at least $200,000, and the market capitalization – from $1 million. The recommended average daily trading volume over two weeks is at least $100,000. In addition, the coin must have at least 2,000 holders for the organization to consider it for potential purchase.
As foundation representatives reported, another requirement for the project is creating the memecoin on the Avalanche network. They also emphasized the importance of meeting security criteria. This refers to checking smart contracts at each development stage, regularly conducting audits, and using various automated analysis tools.
Finally, a promising project must exist for at least one month so the community can study the token and make a decision, the foundation’s statement says.
“The Foundation’s efforts to support such coins will be carried out on an ongoing basis. This will allow new projects to participate in the program as soon as they meet the minimum selection criteria,” the Avalanche team noted.
The Avalanche Foundation made the statement amid the recent growth of memecoins across many networks. We covered the story of a trader who made $1.15 million on an Ethereum network memecoin. Another investor bought the COQ token for $454 and got $2.19 million.
