Memecoins
Fantom allocates $6.5 million to promote “safer Memecoins”
The Fantom Foundation announced a substantial allocation of $6.5 million of its FTM tokens to further the development of more secure memecoin projects. The initiative was announced by CEO Michael Kong at the recent MemeGlobal event in Sydney.
This initiative aims to curb the prevalence of cryptocurrency scams by providing technical and non-technical guarantees for new memecoin launches.
The Fantom Foundation is ramping up its security protocols for memecoins to help drive user growth and prevent scams. This is a response to the high incidence of fraudulent projects on platforms like Base and abandoned projects on Solana.
Co-founder Andre Cronje has introduced a measure requiring memecoin developers to co-launch tokens with the Foundation, controlling initial liquidity to protect investors and deter the rapid exit of creators.
Despite these enhanced safety protocols, challenges remain. A recent example is the Solana-based memecoin BONKKILLER. Despite the dubious claims of a Market capitalization of $328 trillion, the memecoin attracted more than 1,000 investors, then locked up their funds by limiting token transfers. Such incidents highlight the ongoing risk of fraud within the sector.
Kong revealed plans to create a Fantom prize pool of 10 million, equivalent to $6.5 million, aimed at attracting memecoin traders to Fantom.
Kong described a successful memecoin as a “democratic launch where you release a lot of tokens to give to the community” and are not “heavily concentrated in a few whales or a few bags.”
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