As a researcher with experience in the blockchain industry, I find Fantom’s approach to memecoins intriguing. The idea of creating a safer environment for memecoin projects is a necessary step given the high risks associated with this sector. With the memecoin market surpassing $50 billion, it’s essential for blockchains to differentiate themselves and provide value to traders while ensuring safety measures are in place.
Fantom’s Layer-1 blockchain, Fantom, is advocating for “safer memecoins” by allocating $6.5 million in its native token, FTM, as incentives for developers. The aim is to capture a piece of the thriving nearly $50 billion memecoin market.
Michael Kong, the CEO of Fantom Foundation, shared with CryptoMoon his vision to establish an ecosystem where creators can launch what he calls “safer memecoins.” He intends to implement both technical and non-technical safeguards to prevent projects from turning out to be mere rug pulls or scams.
As a crypto investor, I’ve noticed an intriguing trend in the memecoin market lately. The Solana and Coinbase’s Ethereum layer 2 solutions have been at the heart of this craze, with trading volumes on Solana reaching new heights and even surpassing those on Ethereum during the peak of the memecoin rush in March. It seems that these platforms are becoming go-to destinations for investors looking to jump on the next big memecoin trend.
Approximately twenty percent of the meme coins on Base turned out to be fraudulent, while over a dozen significant meme projects on Solana, having amassed a total of $26.7 million in investments, have since been deserted by their founders.
To entice traders of meme coins and bolster the security of the tokens, the Fantom Foundation declared at the April 30 MemeGlobal event in Sydney that they would establish a reward of 10 million Fantom (FTM) tokens – equivalent to approximately $6.5 million – for teams specializing in meme coins.
“Kong explained that the current trend of meme coins presents an opportunity for us to gain a large customer base, as this strategy has proven effective for other blockchain platforms in the past.”
“Kong stated, ‘From our perspective as a chain, expanding the business is our primary goal, which primarily revolves around attracting new customers.'”
“In the end, it’s about what the customer wants. If the customer wants DeFi, give them DeFi. NFTs? Give them NFTs, and when it comes to memecoins, give them memecoins — or at least an environment that allows people to develop memecoins in a safe manner.”
According to Kong, a thriving memecoin is characterized by a “community-driven launch that distributes a large number of tokens among the public,” and does not have “concentration of tokens in the hands of a few wealthy individuals or large hoards.”
Andrei Cronje, one of the co-founders of The Foundation, suggested some safety measures for memecoins back in April. One of his proposals was for developers of these memecoins to work with the Fanton Foundation when launching their token’s initial liquidity, making the foundation a joint controller.
As a researcher, I’ve come across Cronje’s proposal regarding the token supply distribution. He suggested allocating 5% of the tokens to the development team and an additional 10% for marketing purposes. These tokens are securely stored in a multi-signature wallet, requiring the approval of at least one Foundation member before any transaction can be executed.
As a researcher, I would propose that the remaining 85% should be allocated to an FTM Fixed-Time Market (FTM) liquidity pool (LP) managed by the Foundation. They will contribute an initial investment of $65,000 in FTM tokens (approximately 100,000 tokens at current market prices) to this pool.
As a crypto investor, I’d interpret Cronje’s statement as follows: If the amount of FTM in my LP token reaches a threshold of 2 million FTM, then the first 100,000 FTM (representing 5% of the total) will be taken out to cover the initial costs. The remaining LP tokens with the excess FTM will be destroyed or burned.
As a crypto investor, I’d put it this way: “Fantom is currently the 38th largest blockchain network in terms of total value locked (TVL) with approximately $108.3 million. For perspective, Solana and Binance Smart Chain rank fourth and sixth respectively, each having a significantly larger TVL.”
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2024-05-01 06:33