Avalanche Foundation Decides to Add Meme Coins to Its Portfolio

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Avalanche Foundation to include meme coins in its portfolio.
Emin Gün Sirer addresses skepticism and supports the decision.
AVAX price fluctuates following the announcement.

On December 29, 2023, the non-profit power behind the Avalanche (AVAX) L1 ecosystem, the Avalanche Foundation, made a critical decision. According to the decision, it was announced that some meme coins would be added to the foundation’s portfolio. Following this, Emin Gün Sirer, co-founder of Ava Labs, made statements to address the concerns and criticisms of skeptics.

What Does Emin Gün Sirer Think?

Emin Gün Sirer, the co-founder of Ava Labs, who has often been mentioned in the past, stated in his post on X (formerly known as Twitter):

People trying to fade out memecoins are of the same kind as those who tried to fade out pop music in the 60s, called Banksy a vandal in the 80s, and slammed rap in the 90s.

Sirer also applauded the decisions and investment plan of the Avalanche Foundation in the field of meme coins.

The co-founder of Ava Labs mentioned that the Avalanche (AVAX) ecosystem has a lot of corporate activity, while highlighting that the Foundation could afford to invest some of its funds into certain meme coins.

At the same time, Sirer, who also made a self-criticism, noted that it took him some time to personally understand the value of meme coins. He also slightly targeted Elon Musk, stating that he did not support Musk’s semi-ironic advancement of Dogecoin (DOGE) in the first quarter of 2021.

However, after all this process, he acknowledged the cultural existence and importance of the meme coin era, as well as its impact on the market. Now, according to him, people’s favorite coins no longer necessarily need roadmaps and ambitious scalability promises. To clarify the issue, Emin Gün Sirer drew a parallel between buying meme coins and owning luxury clothing items:

Do I have any Balenciaga clothing? No. Does Balenciaga keep you warmer than other clothes? No. But is Balenciaga “holding back” the clothing field? Also no. It serves its own special audience very well. Its existence as a clothing brand is a clear positive.

Following the recent announcement, the price of AVAX, the native cryptocurrency of the Avalanche blockchain, rose from $39 to over $42 but then followed the general market downturn and fell back to $39.5.

Memecoins Valuable If Entertaining

The leading figure of Avalanche (AVAX) also spoke again about all the risks of investing in meme coins. According to him, aside from increased volatility, prices are affected not by fundamentals but solely by rumors.

When the narrative of this or that meme coin loses its “fun”, it becomes insignificant, so all traders and investors must be very careful.

Following the decision of the Avalanche Foundation, some meme coins on the Avalanche (AVAX) blockchain have seen a rise in recent days. Coq Inu (COQ) and Shibavax (SHIBX) prices have attracted attention with double and even triple-digit increases.