Yesterday, Dec. 29, 2023, Avalanche Foundation, a non-profit behind the ecosystem of Avalanche (AVAX) high-performance L1, announced the decision to add some meme coins to its portfolio. Emin Gün Sirer addressed the concerns and criticism of skeptics.
Avalanche Foundation buying meme coins is luxury, Emin Gün Sirer says
The people trying to fade meme coins can be compared to those who ignored or criticized prominent cultural and tech trends of the past: pop music, street art, rap and so on. As such, Avalanche Foundation’s decision to enter the meme coin segment is something he applauds, Ava Labs’ co-founder Emin Gün Sirer shared on X (formerly Twitter).
The Avalanche (AVAX) ecosystem has too much institutional activity so that the Foundation can afford the luxury to invest part of its funds to some meme coins, the Ava Labs co-founder stressed.
At the same time, he admitted that it took a while for him to understand the value of meme coins personally. He did not support Elon Musk semi-ironically supporting Dogecoin (DOGE) in Q1, 2021.
But then, he understood the cultural context and significance of the meme coin frenzy and its effects on the scene: Coins people like do not necessarily need road maps and ambitious scalability promises.
For better understanding, Emin Gün Sirer compared purchasing meme coins to owning Balenciaga luxury wear:
Do I own any Balenciaga apparel? No. Does Balenciaga keep you warmer than other clothing? No. But does Balenciaga keep the “clothing space” back? Also no. It serves its specific audience very well. Its existence as a clothing brand is a net positive
Following yesterday’s announcement, the price of AVAX, the core native cryptocurrency of the Avalanche blockchain, jumped from $39 to over $42.
“Meme coins are valuable only as long as they are fun”: Major warning by industry vet
At the same time, the Avalanche (AVAX) key figurehead reiterated all risks of investing in meme coins. Besides increased volatility, their prices are only affected by narratives, not by fundamentals.
Once this or that meme coin’s narrative loses its “fun,” it becomes irrelevant, so, all traders and investors should be super cautious.
Triggered by Avalanche Foundation’s eccentric step, a number of meme coins on the Avalanche (AVAX) blockchain jumped in the recent days.
Coq Inu (COQ), Husky Avax (HUSKY) and Shibavax (SHIBX) prices witnessed double- and even triple-digit upsurges.