The cryptocurrency market is known for its volatility, with prices recently fluctuating under the influence of Bitcoin. The Avalanche cryptocurrency attracts investors’ attention due to its unique features and capabilities.
In this article, we will talk more about the latest news with the Avalanche.
Avalanche Criteria For Meme Coins Purchases
In December 2023, Avalanche Foundation announced the launch of a $100 million Culture Catalyst program. What does this program involve?
The initiative focuses on funding NFT projects, meme coins and similar tokens created by their community for engagement as “community coins”. Avalanche Foundation noted that meme coins have a high social value due to the engagement, community spirit, and culture they generate, which goes beyond the humor they embody. They also mentioned that they’ve already started using the program and purchasing meme coins without disclosing their names or the amount of investment.
However, this is not the only announcement they have made. The foundation revealed their criteria for meme coin purchase.
Let’s talk about some of them more:
- Fair launch: The creator of the community token contract must have renounced ownership, and the project team must have burned or adequately locked initial liquidity.
- Security: Security is emphasized through verified contracts, audits, community due diligence, and the use of automated tools.
- Minimum lifespan, Market Cap and Daily Trading Volume: Minimum lifespan, market cap and daily trading volume have been established, emphasizing the importance of public involvement and a stable market presence.
- Liquidity: In order to provide liquidity around the coin so that token holders can easily deposit and withdraw coins, community coins must use liquidity provisioning and management measures.
- Native to Avalanche: Community tokens should exist only within the Avalanche ecosystem.
However, in order for a token to be considered as an investment, it must also have at least 2,000 unique holders. In addition, the first 100 token holders must collectively own less than 60% of the total supply.
The project must have an average daily trading volume on the Avalanche ecosystem’s DEX of at least $100,000 for two weeks, as well as total liquidity of more than $200,000.
Avalanche Price Dropping
On December 24, the AVAX price reached its highest level of $50.
However, almost a month later, the price of AVAX dropped by almost 40%. The token’s price fell to a low $27 and then rose again. Trading volume on AVAX also declined during this period. Perhaps the interest in meme coins will help AVAX for a while, but for how long?
Although the indicators are not encouraging at the moment, traders are positive and have a bullish view of the future.
TradingView Source: WhiteBIT AVAX Chart
This is what crypto trader Sam MTI recently said in his X account:
“$AVAX is already 45% down. A little bit more and you have a good entry for the bull run. If you want to be more safe just wait for the next buy signal!”.
Popular crypto trader Wolf of Altcoins believes that AVAX will increase 10x this bull run.
According to the DigitalCoinPrice, all technical indicators indicate that the current sentiment is Bullish. And their forecast shows that it’s a good time to buy Avalanche now.
Disclaimer* Always remember to do your own research and trust verified information.
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