The memecoin frenzy is going institutional. Avalanche, one of crypto's leading smart contract platforms, has acquired stakes in five community meme tokens native to its blockchain - including Coq Inu, Gecko, Kimbo, NoChill, and Tech.

The investments are part of Avalanche's Culture Catalyst program aimed at supporting Web3 creators and fueling ecosystem growth. With memecoins like Bonk and WIF skyrocketing in recent months, the Foundation sees value in embracing the cultural phenomenon.

"Community coins play a crucial role in today's Web3 landscape," Avalanche said in announcing the buys. "They represent the unique interests, spirit, and creativity of diverse crypto communities."

Bigger than just dogs

While Dogecoin pioneered the memecoin craze, spawning countless canine-themed offshoots, Avalanche's picks showcase the diversity of the genre. Beyond the Shiba Inu-inspired Coq Inu and Kimbo, they include Tech, NoChill, and Gecko, with an $11 million market cap, according to the foundation.

Avalanche says the tokens met eligibility criteria around trading volumes and commitment to its ecosystem. But the program remains a work in progress - guidelines could evolve alongside the rapidly-shifting memecoin landscape.

The foundation is already eyeing ERC-404 tokens, a novel class that the Avalanche community is helping pioneer. Acquisitions may come and go as Avalanche reshapes the initiative "to further its mission."

A risky subculture

Memecoins have long drawn skepticism from crypto purists who see them as the epitome of mindless retail speculation. With next-to-zero utility, they're considered among the riskier holdings.Their resurgence this year after the brutal crypto bear market of 2022 has added to concerns about another boom-and-bust cycle playing out.

But Avalanche seems willing to lean into the subculture. "The Foundation is dedicated to helping foster a more diverse Avalanche ecosystem through Culture Catalyst and its many other efforts," its announcement said.

Avalanche is betting memecoins are too ingrained in that culture to ignore. For this blockchain upstart, having a stake in the madness could be a way to secure relevance in a web3 future that undoubtedly features memecoins.