Fantom Cofounder Mulls Idea for “Safer” Meme Coins

Andres Cronje, a co-founder of the Fantom Foundation, suggested a method on Tuesday for generating meme tokens in a fair and secure way on their network, intending to avoid the risks connected to purchasing lighthearted tokens that may not have serious value.

In the last year, trading and creating meme coins within the cryptocurrency market has emerged as an entertaining and financially significant trend among investors. The excitement surrounding meme coins on Solana and Binance networks has resulted in substantial earnings for platform managers and participants. However, this phenomenon carries potential hazards for both the community and individual investors.

Cronje identified several potential risks. For instance, teams might discard their tokens following a social media buzz, leading to a sell-off by early investors in large quantities. Additionally, the removal of liquidity could impact token prices negatively, and developers holding the power to alter token code represented another risk.

The Fantom Foundation, a non-profit organization responsible for the advancement and upkeep of the Fantom blockchain, is suggested to be included as one of the signatories managing the token’s liquidity pools according to the suggested plan.

“Cronje proposed setting aside as much as 5% of the funds for covering meme team costs. These funds will be secured in a multisignature wallet, which requires approval from no less than two team members and one foundation member to access.”

“The next step is to allocate the remaining 85% of the tokens. This amount will be used to create a liquidity pool (LP) in the foundation’s multisig wallet, using 100,000 FTM as collateral. Any Fantom exchange can be chosen to host this LP.”

Approximately 10% of the budget can be set aside for marketing costs, including exchange listings. This amount will be securely stored in a multisignature wallet that requires approval from at least two team members and one representative from the Foundation before it can be accessed.

If the amount of FTM held by the FTM in the LP pool reaches a minimum of 2,000,000 FTM, then the first contribution of 100,000 FTM (which is 5% of the total) will be taken out to cover the initial costs. The remaining FTM from the LP pool will subsequently be destroyed or burned.

Cronje of Fantom is among the blockchain projects recently embracing meme coins, signaling a shift from past trends where these tokens were merely viewed as commodities for trading.

The Avalanche Foundation, responsible for supporting the Avalanche network, unveiled a new investment fund this year. This fund has been actively backing and fostering the expansion of meme or culture coins since March. In total, it has put money into five different tokens during this period.