Zinger Key Points
- Fantom co-founder Andre Cronje’s new proposal aims to enhance meme coin security on the Fantom network.
- This initiative aims to prevent initial launch sniping and potential large future dumps by early members.
To increase investor safety with meme coins, Andre Cronje, co-founder of the Fantom Foundation, has introduced a proposal to issue these tokens on the network with enhanced security and fairness.
What Happened: Cronje’s proposal is crafted to mitigate the risks associated with investing in less serious tokens.
The proposed plan involves token issuance with the Fantom Foundation, a non-profit dedicated to the development and maintenance of the Fantom FTM/USD blockchain, acting as one of the signers overseeing the token's liquidity pools.
According to the plan, up to 5% of the tokens will be allocated to cover the meme team’s expenses, while 85% of the tokens will be placed in an FTM/token liquidity pool in the foundation multisig wallet, CoinDesk reported. A maximum of 10% of tokens can be earmarked for marketing-related expenditures.
Other blockchain teams, such as the Avalanche Foundation and BNB Chain developers, have also begun direct engagement with meme coins
Also Read: Crypto Q1 Report Highlights 300% Meme Coin ‘Renaissance’ And ‘Major Step’ For Ethereum
Why It Matters: Meme coins, despite emerging as a multibillion-dollar sector among cryptocurrency investors in recent years, carry inherent risks. These include teams selling off tokens after social media hype, early investors offloading large quantities, liquidity withdrawal and developers having the ability to modify token code.
Cronje’s proposal marks a significant departure from past practices, where such tokens were often viewed merely as tradable assets.
By implementing measures such as controlling liquidity pools and allocating tokens for specific expenses, the proposal aims to create a safer and fairer environment for investors in meme coins.
What’s Next: The influence of meme coins and Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: How ‘Meme Coin Sausage Is Made,’ According To Crypto VC: ‘I May Be Everyone’s Exit Liquidity’
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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