Meme coin landscape
In recent weeks and months we have seen meme coins garner a lot of attention from a broad spectrum of market participants. Throughout the last year, open interest for memecoins has increased significantly, expressing this increase in appetite for exposure to this sectoral niche.
Market volume for meme coins reached an impressive local peak of $163 billion during March of this year as illustrated below:
Following the surge in interest and activity surrounding meme coins, there has been an emergence of protocols and individuals introducing incentives and plans aimed at fostering a safer and more transparent meme coin community within their protocols and chains. One such example that we looked at a couple of weeks ago included Avax’s meme coin rush campaign. Fantom has recently come out with their own proposal as we will discuss below.
Andre Cronje’s proposal for Fantom
Yesterday Andre released his proposed plan of action to enhance community and investor safety for meme coin related assets launched on the Fantom ecosystem.
He outlined the risks he wishes to mitigate such as;
- Team disposing of tokens
- Early investors offloading substantial token quantities
- Withdrawal of liquidity
- Token control mechanisms
In doing so he proposed the following;
Individuals interested in initiating a community or meme coin project should reach out to him directly with their proposal, including idea specifics, visuals, name, symbol and theme, via Telegram or Twitter. He also noted that proposals deemed offensive or referencing real individuals or projects will not be supported.
He also noted that marketing efforts, including exchange listings, promotions and airdrops, may be funded up to 10% of total tokens. These funds will be secured in a multi-signature wallet, requiring approvals from two project and at least one foundation member.
Furthermore, up to 5% of tokens are reserved for the project team's expenses, safeguarded in a similar multi-signature arrangement.
The bulk of the tokens, which he specified to be 85%, will be allocated to a liquidity pool on the Fantom network, controlled by a foundation multi-signature wallet. An initial investment of 100,000 FTM will be made. The chosen Fantom-based Automated Market Maker for the LP will be open to nominations. If the LP's FTM balance exceeds 2,000,000 FTM, the initial 100,000 FTM will be retrieved to offset start-up costs, with the remaining LP funds being permanently withdrawn.
The token will be designed without the ability to create additional tokens or change ownership.
The launch will be promoted on Twitter, with restrictions to prevent single transactions from exceeding 1% of the LP's size, aiming to deter market manipulation at launch and excessive sales by early investors.
Conclusion
The growing fascination with meme coins has spurred protocols and individuals to devise strategies that ensure the ecosystem's safety and transparency. Amid this evolving landscape, Fantom has emerged as a proponent of creating a secure environment for meme coin enthusiasts and investors. Andre Cronje's proposal, focusing on mitigating risks such as token dumping, liquidity withdrawal and unregulated token control, outlines a comprehensive plan. By advocating for direct proposal submissions, securing marketing funds in multi-signature wallets, allocating a significant portion of tokens to a liquidity pool and implementing transaction size limits, Fantom's initiative aims to curtail the speculative excesses that have characterised the sector while laying the groundwork for a more stable and trustworthy meme coin community.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Meme coin landscape
In recent weeks and months we have seen meme coins garner a lot of attention from a broad spectrum of market participants. Throughout the last year, open interest for memecoins has increased significantly, expressing this increase in appetite for exposure to this sectoral niche.
Market volume for meme coins reached an impressive local peak of $163 billion during March of this year as illustrated below:
Following the surge in interest and activity surrounding meme coins, there has been an emergence of protocols and individuals introducing incentives and plans aimed at fostering a safer and more transparent meme coin community within their protocols and chains. One such example that we looked at a couple of weeks ago included Avax’s meme coin rush campaign. Fantom has recently come out with their own proposal as we will discuss below.
Andre Cronje’s proposal for Fantom
Yesterday Andre released his proposed plan of action to enhance community and investor safety for meme coin related assets launched on the Fantom ecosystem.
He outlined the risks he wishes to mitigate such as;
- Team disposing of tokens
- Early investors offloading substantial token quantities
- Withdrawal of liquidity
- Token control mechanisms
In doing so he proposed the following;
Individuals interested in initiating a community or meme coin project should reach out to him directly with their proposal, including idea specifics, visuals, name, symbol and theme, via Telegram or Twitter. He also noted that proposals deemed offensive or referencing real individuals or projects will not be supported.
He also noted that marketing efforts, including exchange listings, promotions and airdrops, may be funded up to 10% of total tokens. These funds will be secured in a multi-signature wallet, requiring approvals from two project and at least one foundation member.
Furthermore, up to 5% of tokens are reserved for the project team's expenses, safeguarded in a similar multi-signature arrangement.
The bulk of the tokens, which he specified to be 85%, will be allocated to a liquidity pool on the Fantom network, controlled by a foundation multi-signature wallet. An initial investment of 100,000 FTM will be made. The chosen Fantom-based Automated Market Maker for the LP will be open to nominations. If the LP's FTM balance exceeds 2,000,000 FTM, the initial 100,000 FTM will be retrieved to offset start-up costs, with the remaining LP funds being permanently withdrawn.
The token will be designed without the ability to create additional tokens or change ownership.
The launch will be promoted on Twitter, with restrictions to prevent single transactions from exceeding 1% of the LP's size, aiming to deter market manipulation at launch and excessive sales by early investors.
Conclusion
The growing fascination with meme coins has spurred protocols and individuals to devise strategies that ensure the ecosystem's safety and transparency. Amid this evolving landscape, Fantom has emerged as a proponent of creating a secure environment for meme coin enthusiasts and investors. Andre Cronje's proposal, focusing on mitigating risks such as token dumping, liquidity withdrawal and unregulated token control, outlines a comprehensive plan. By advocating for direct proposal submissions, securing marketing funds in multi-signature wallets, allocating a significant portion of tokens to a liquidity pool and implementing transaction size limits, Fantom's initiative aims to curtail the speculative excesses that have characterised the sector while laying the groundwork for a more stable and trustworthy meme coin community.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
Meme coin landscape
In recent weeks and months we have seen meme coins garner a lot of attention from a broad spectrum of market participants. Throughout the last year, open interest for memecoins has increased significantly, expressing this increase in appetite for exposure to this sectoral niche.
Market volume for meme coins reached an impressive local peak of $163 billion during March of this year as illustrated below:
Following the surge in interest and activity surrounding meme coins, there has been an emergence of protocols and individuals introducing incentives and plans aimed at fostering a safer and more transparent meme coin community within their protocols and chains. One such example that we looked at a couple of weeks ago included Avax’s meme coin rush campaign. Fantom has recently come out with their own proposal as we will discuss below.
Andre Cronje’s proposal for Fantom
Yesterday Andre released his proposed plan of action to enhance community and investor safety for meme coin related assets launched on the Fantom ecosystem.
He outlined the risks he wishes to mitigate such as;
- Team disposing of tokens
- Early investors offloading substantial token quantities
- Withdrawal of liquidity
- Token control mechanisms
In doing so he proposed the following;
Individuals interested in initiating a community or meme coin project should reach out to him directly with their proposal, including idea specifics, visuals, name, symbol and theme, via Telegram or Twitter. He also noted that proposals deemed offensive or referencing real individuals or projects will not be supported.
He also noted that marketing efforts, including exchange listings, promotions and airdrops, may be funded up to 10% of total tokens. These funds will be secured in a multi-signature wallet, requiring approvals from two project and at least one foundation member.
Furthermore, up to 5% of tokens are reserved for the project team's expenses, safeguarded in a similar multi-signature arrangement.
The bulk of the tokens, which he specified to be 85%, will be allocated to a liquidity pool on the Fantom network, controlled by a foundation multi-signature wallet. An initial investment of 100,000 FTM will be made. The chosen Fantom-based Automated Market Maker for the LP will be open to nominations. If the LP's FTM balance exceeds 2,000,000 FTM, the initial 100,000 FTM will be retrieved to offset start-up costs, with the remaining LP funds being permanently withdrawn.
The token will be designed without the ability to create additional tokens or change ownership.
The launch will be promoted on Twitter, with restrictions to prevent single transactions from exceeding 1% of the LP's size, aiming to deter market manipulation at launch and excessive sales by early investors.
Conclusion
The growing fascination with meme coins has spurred protocols and individuals to devise strategies that ensure the ecosystem's safety and transparency. Amid this evolving landscape, Fantom has emerged as a proponent of creating a secure environment for meme coin enthusiasts and investors. Andre Cronje's proposal, focusing on mitigating risks such as token dumping, liquidity withdrawal and unregulated token control, outlines a comprehensive plan. By advocating for direct proposal submissions, securing marketing funds in multi-signature wallets, allocating a significant portion of tokens to a liquidity pool and implementing transaction size limits, Fantom's initiative aims to curtail the speculative excesses that have characterised the sector while laying the groundwork for a more stable and trustworthy meme coin community.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
