The Fantom Foundation has announced a substantial $6.5 million allocation of its FTM tokens to foster the development of safer 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 scams in the cryptocurrency space by offering technical and non-technical safeguards for new memecoin launches.
The Fantom Foundation is intensifying its safety protocols for memecoins to foster user growth and prevent scams. This is a response to the high incidence of fraudulent projects on platforms like Base and abandoned ones on Solana.
Co-founder Andre Cronje has introduced a measure requiring memecoin developers to co-launch tokens with the Foundation, controlling initial liquidity to safeguard investors and deter the quick exit of creators.
Despite these enhanced security protocols, challenges remain. A recent example is the Solana-based BONKKILLER memecoin. Despite questionable claims of a $328 trillion market cap, the memecoin attracted over 1,000 investors and then locked their funds by restricting token transfers. Such incidents underscore the ongoing risk of fraud within the sector.
Kong revealed plans to establish a 10 million Fantom prize pool, equivalent to $6.5 million, aimed at enticing memecoin traders to Fantom.
Kong described a successful memecoin as one with a “democratic launch where you release a lot of tokens to give to the community” and aren’t “heavily concentrated in a few whales or a few bags.”
Also Read: 12 Meme Coins on Solana Abandoned Within a Month of Presale
