The Fantom Foundation proposes some guidelines for avoiding rug-pulls in Meme coins
Given the current situation, where investment in this type of Crypto is very high, it is only fair to offer some form of security to investors.
Although I do not consider them investors, but gamblers!
In doing so, however, is it not the case that a very important pillar of crypo-currencies can be lost: decentralization?
Fantom’s Andre Cronje is part of a trend among blockchain teams willing to engage directly with meme coins, proposing a plan to address risks and ensure fair distribution.
Cronje's proposal aims to issue meme coins on the Fantom network, tackling concerns like team token dumping and liquidity removal.
The plan includes allocating tokens for team expenses, marketing, and liquidity pool support, focusing on fairness and investor protection.
Cronje's proposal seeks to navigate the risks associated with buying non-serious tokens, aiming to provide a safe and equitable environment for meme coin issuance on the Fantom network.
While meme coins have become a lucrative and entertaining sector for crypto investors, they come with risks such as team dumping, early investor sell-offs, and liquidity removal.
Cronje's plan involves issuing tokens with the Fantom Foundation overseeing liquidity pools, ensuring responsible allocation and management.
A portion of the tokens will be allocated for team expenses, marketing, and liquidity pool support, with safeguards like multisig requirements to prevent misuse.
If the liquidity pool reaches a certain threshold, a portion of the initial FTM provided will be removed to cover costs, demonstrating a commitment to responsible management.
Cronje's initiative reflects a departure from previous approaches, where meme coins were often treated solely as tradable assets, signaling a more proactive engagement with this emerging sector.
Similar initiatives have been seen in other blockchain ecosystems, such as the Avalanche Foundation's support for "culture coins" and BNB Chain's investment in meme coin projects, indicating a growing recognition of the potential of meme coins within the crypto community.
Although it reduces decentralisation slightly, I like the sound of this. Crypto (and meme coins in particular) has a terrible reputation for scams among the non-crypto public, who can't see that central banks and legacy finance are far bigger scams.
So being seen to provide some consumer protection makes crypto a bit safer for ordinary, less sophisticated investors. Another factor is that we never know which meme coins with a bit of guidance can become something genuinely useful. After all, Doge was a meme coin and is now sometimes seen as the small change in your pocket compared to the Bitcoin's hundred dollar bill.