In a groundbreaking move, the Avalanche Foundation, the supporting organization behind the Avalanche blockchain, has unveiled an “eligibility framework” for meme coins, introducing guidelines that must be followed for potential acquisitions. This announcement, detailed in a recent post on the X platform, marks a significant development in the cryptocurrency space.
Meme coins, known for their volatility and often humorous nature, particularly those associated with canine-themed tokens, have become a noteworthy sector within the industry. However, the Avalanche Foundation recognizes the need to establish criteria to separate legitimate projects from potential frauds, given the ease with which creators can produce these coins on permissionless blockchains.
According to a recent report, the foundation, utilizing funds from its $100 million “Culture Catalyst” fund for cultural initiatives, has already initiated the purchase of meme coins. The three-page rule set specifies that meme coins must be native to the Avalanche blockchain and independent of their creators to be considered. Additionally, coins hoarded by whales, lacking security firm examinations, or introduced without whitelists will not meet the foundation’s standards.
The foundation clarified that these guidelines are negotiable, and adherence does not guarantee adoption. However, starting from January 2024, meme coins must meet certain minimum requirements. A minimum of 2,000 holders, decentralized token distribution, over $200,000 in liquidity, a market value exceeding $1 million, and a minimum daily trading volume of $100,000 over a two-week average.
The Avalanche (AVAX) faces a bearish trend, currently trading at $27.77, indicating a decline of 11% in the last 24 hours. AVAX has traded between $42.50 and $45 in the past week, marking a cumulative loss of over 22%.
The AVAX token is on the brink of testing a critical support level at $27.46, as current market trends indicate. The Relative Strength Index (RSI) highlights substantial selling pressure, and the ongoing average decline implies a sustained decrease in the token’s overall value.
The outcome remains uncertain, with potential scenarios hinging on whether bulls can maintain support at $27.46 to test resistance at $31.67. Conversely, a bearish scenario could witness a drop to the lower support level of $20.02, emphasizing the current volatility in the Avalanche market.
