Posted:
- The Avalanche Foundation’s decision to invest in meme coins was criticized.
- AVAX’s price fell significantly as short positions increased.
Avalanche [AVAX] has witnessed a surge of interest in recent weeks. To capitalize on this rising interest, Avalanche employed an unconventional strategy.
Meme-ing
The Avalanche Foundation, known for supporting the development of the Avalanche blockchain ecosystem through grants and investments, plans to acquire meme coins.
This initiative recognizes the diverse niches within the cryptocurrency market, spurred by the recent rise of tokens such as Bonk [BONK]which significantly boosted activity on the Solana [SOL] network earlier this month.
The decision faced significant backlash within the cryptocurrency community. In response to the concerns, Avalanche founder Emin Gün Sirer addressed the criticism in a tweet.
The people trying to blur memecoins are the same kind of people who blurred pop music in the 1960s, called Banksy a vandal in the 1980s, and talked rap in the 1990s.
— Emin Gün Sirer???? (@el33th4xor) December 29, 2023
A timely response
He compared those who criticized meme coins to individuals who dismissed pop music in the 1960s, labeled Banksy a vandal in the 1980s and criticized rap in the 1990s.
Sirer highlighted Avalanche’s strong institutional activity, distinguishing it from coins that made promises without delivery.
He praised the Avalanche Foundation’s vision in supporting meme coins, recognizing the cultural significance of these coins as social signaling mechanisms.
Although Sirer initially had reservations about meme coins, he now recognizes their value as cultural expressions.
He emphasized that a currency does not need a roadmap or complex promises to be legitimate; it can simply be used for personal preference and social cues.
Sirer warned about the volatility of meme coins and advised careful consideration due to their unpredictable nature in an already volatile market.
Sirer drew parallels to his previous recommendation of Dogecoin in 2015 for its fun and experimental appeal and emphasized the importance of meme coins retaining their enjoyable and entertaining aspects to remain valuable.
Read Avalanche [AVAX] Price forecast 2023-24
AVAX bleeding
However, the markets did not share the same enthusiasm as Emin. In the last 24 hours, AVAX’s price fell by 8.17% to trade at $38.61. As the price of AVAX plummeted, the number of short positions taken against AVAX had increased.
At the time of writing, the percentage of short positions taken was 53.41%. Only time will tell if the meme coin development will help AVAX spoil the bears’ plans.
Source: Santiment