Traders looking for small-cap plays on other networks seem to have been prompted by the exponential gains made on Solana-based meme coins; some have even been fortunate enough to turn their initial small capital into a life-changing sum.
However, Avalanche’s Coq Inu (COQ), a token with a hen theme, is driving the conversation on the blockchain. Dog-themed tokens have typically generated enormous profits for meme coin traders. Based on data, the token was first issued on December 8 and as of Wednesday, its capitalization had increased to $230 million, meaning that early buyers had made enormous profits.
The developers are not hiding the fact that the token is “for entertainment purposes only”: “$COQ is a meme coin with no intrinsic value or expectation of financial return.” The website states, “There is no official team or roadmap.”
“The coin is purely for amusement and is completely useless.”
According to on-chain data cited by Lookonchain, a single trader appears to have purchased just over $450 worth of COQ shortly after its issuance, and the amount has since skyrocketed to over $2.5 million. The wallet appears to have realised gains of over $800,000 and sold over $1.5 million worth of COQ thus far.
The popularity of an already-existing meme that has gone viral or the attention that these communities receive online are the main sources of appeal for meme tokens. While the majority of these tokens are destined to fail, those that succeed might become billion-dollar ventures, and their creators might then add additional core functionality to spur even more growth.
For a few pennies, anyone can invoke a smart contract to issue tokens on a blockchain like Ethereum or another. Decentralised exchanges enable tokens to be issued instantaneously, given liquidity, and traded shortly thereafter.
COQ has been Avalanche’s shining star in recent weeks. Data shows the tokens have over 30,000 unique holders as of Tuesday, and saw $30 million in trading volumes in the past 24 hours.